Inflation data September 2022

RECRUITERS REACTION TO GRADUATE SALARIES: I looked through our placement data and the average entry level salary in 2021 was £26,241. So far this year it is £28,587 – a 9% increase. I’ve also asked around the team who cover the full spectrum of sectors across the UK and these are their comments. “Yes. But combined with market conditions and the war for talent. Three IT clients have definitely increased salaries. One particularly cited cost of living as a key factor.” “The majority of my clients (IT, Consulting and Finance) have put up/are looking at increasing salaries. This is a mix of inflation/to help with cost of living and competition for talent. Not loads but 1k or 2k on base compared to last year.” “Yeah mine have gone up too, one tech client is raising salaries from £30k-£35k (can’t publish this yet as its just waiting to be signed off by their board) but very likely to go through. Big four client has also raised theirs.” “Definitely seen increases in my recruitment consultancy clients but this is mostly due to their competitors, which you could argue has been sparked by inflation. I always use it as an example to clients on why they should increase salaries (rising cost of living).” “Big retail client have increased their tech salaries by £5k to £35k this year as it’s so competitive. All my clients have put their salaries up by 2k ish this year.” “Eight of my clients and some others have all increased this year. Only one of those explicitly said this is due to inflation the rest due to being competitive.” “I've had conversations with at least 6+ engineering clients about salaries needing to be raised to remain competitive and because graduates' expectations have gone up due to the cost of living crisis / inflation.”

At the moment I'm holding off raising our broker fees. But it's something I'm actively considering to counter the huge increase in the cost of living. As a business, our main concern is rising interest rates and how they'll impact mortgage demand. With cash being sucked out of people's pockets faster than a gushing oil well, I believe property prices will fall over the next year. In turn, would-be buyers will hold off making house purchases. And homeowners looking to remortgage could find the increased payments unaffordable, leading to an avalanche of distressed sellers and placing further downward pressure on prices.

As unfortunately predicted there has been a startling lack of clarification and finer detail of the Governments plans to help business and their energy bills - whilst inflation soars. Small businesses such as mine are already feeling the strain. We will aim to tighten belts further, but I worry it won't be enough. Left with no other choice but to pass on the increases to our customers - at the risk of losing their business - the vicious cycle turns. And the suggesed 6-month support plan is barely a sticking plaster. As the Chair of a charity that gives small financial grants to people undergoing cancer (whose incomes are already negatively affected) we are bracing ourselves once more for a sharp increase again in requests for help. We experienced similar during Covid, but we believe the requests will now focus on essentials like food. It is extremely worrying, as we are reliant upon public donations to fund these grants, and my fear is we just won't have the income to meet demand. To our Government, I saw we need details. Details. Details. Details.

I’m seeing demand for Career Advice and CV Writing services hitting an all-time high. Job insecurity and the rising cost of living are huge drivers for change. After all, being well paid is a fairly important thing for employees, and though it's not everything, not making enough to pay the bills is a key reason why employees leave. The 'long' upward mobility from the bottom to the top of the ladder is becoming less attractive even for the most motivated employee. This translates to a shift in clientele, whereby in the past, most of my clients invested in professional career services to help secure a promotion. More recently, people are seeking support to formulate strategic plans to “future-proof” their careers which often takes them off the traditional linear path. Clients are less hung up on job titles, are more open to new opportunities and more willing to step outside their comfort zone and explore where their expertise could be useful and financially valued.