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Christmas jobs squeeze to drive 2022 pay demands – Indeed


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Labour shortages are set to put pressure on retailers and restaurants this Christmas and lead to pay demands next year, a survey has found.

The number of people looking for short-term seasonal roles is down around a quarter on pre-pandemic levels, while job postings are up by 50pc, just shy of 2019 levels, recruitment firm Indeed said on Monday.

The monthly survey also showed a lack of urgency among job searchers, with only 8pc actively hunting for a new job in October, while 52pc were not open to new work and 27pc were job searching only ‘passively’.

Retailers and the hospitality sectors are facing particular challenges as they struggle to hire people to deal with an increase in trade post-lockdown.

“The tight labour market was already evident, and now we’re seeing that it may have an impact on the usual seasonal surge in recruitment around Christmas,” said Indeed economist Jack Kennedy.

“With the rate of inflation now running at over 5pc, as workers encounter higher prices for food, energy and other essentials, combined with the supply and demand imbalance for workers, we have a cocktail of circumstances that will almost certainly put workers in a good position to seek pay increases next year.

“Employers with acute shorter term needs may need to bump pay in advance of next year to ensure that roles are filled.”

The CSO reported a 3.9pc increase in labour costs in its most recent quarterly update.

Pent-up pandemic savings could be one of the reasons for the lacklustre state of the employment market, according to Indeed.

CSO data published earlier this month showed that Irish household savings rose by €31bn last year to an all-time high of €313bn.

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As those savings run out, it could force more people back on to the job market, with 9pc of respondents saying that savings running low could be a potential trigger for more active job seeking.

However, 30pc of people said they were waiting until there were more job opportunities available while 20pc said the reason for the lack of interest was because they were taking time off.

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