Britain's job market looks to be at last gathering momentum as January showed the sharpest growth in salaries in nearly two years, according to figures from the Recruitment and Employment Confederation.

According to the Daily Telegraph:

"Engineering and IT staff are the most in-demand, the survey found, with the North of England seeing the fastest rate of growth in permanent jobs, followed by the Midlands."

With salaries now on the rise for talented professionals, the digital market has retained a near-impervious state throughout the double-dip recession and has led the way for other sectors, encouragingly so with increases in pay and demand outside of London now being recognised.

Tom Hadley, REC director of policy, said: “The war for talent has begun. January saw the sharpest rise in starting salaries in well over a year after a nine-month trend of increases. The rise is caused by continued growth in permanent vacancies paired with a reduction in candidate availability.”

“Skills shortages in whole sectors like engineering and IT and for particular roles like chefs, drivers and sales are spurring competition for qualified staff. Employers are realising that to secure the talent they need to offer more attractive salaries,” he said.

Bernard Brown, head of business services at KPMG, said: “Amid the doom and gloom caused by predictions of slow growth, the hiring figures for January should give employers and employees plenty of reasons to be cheerful. We are by no means at a stage where the candidate is king, but perhaps they are moving closer to the throne.”

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