More UK employers found it difficult to fill their job vacancies, according to Labor Market Outlook from the Chartered Institute of Personnel and Development.
About two-third of employers report at least some of the vacancies are proving hard to fill since last summer.
The survey showed that the supply of labor is more constrained compared with previous years, especially for low and medium-skilled occupations. The number of applicants for a vacant job decreased compared to the summer 2017.
Increasing salaries is the most obvious reaction to these challenges. A majority of employers responded by increasing salaries for their vacancies
According to the survey data, employers’ median basic pay increase expectations in the 12 months to June 2019 stood at 2 percent.
The survey concluded that a reduction in labor supply, weak productivity and uncertainty over Brexit all point to sluggish wage growth and continued recruitment difficulties in the year ahead.