LONDON (Reuters – British employers raised pay for their new workers by the highest level since at least 1990s. According to a survey, the Bank of England is studying the data to see how persistant the recent rise in inflation may be.

According to The Recruitment and Employment Confederation (REC), firms still sought out workers in September, but the availability of staff fell again. This pushed up the starting wages for both permanent and temp workers the highest ever recorded in the 24-year survey.

Neil Carberry, Chief Executive of REC, stated that there was a lot of competition for employees in all areas. This includes food processing and logistics. There is also a shortage truck drivers due to Britain’s current fuel crisis. Office-based jobs are available.

“We’ve all witnessed how labour shortages affect our daily lives in the last weeks,” he stated.

Carberry called on the government to increase business investment and relax post-Brexit immigration laws, to avoid trade barriers, to improve skill training, as well as to promote international trade.

According to the BoE, there are growing arguments for raising its interest rates after last year’s coronavirus pandemic. Inflation is expected to rise above 4%. The BoE is monitoring pay growth closely to determine if the inflation rise will be temporary as predicted.