A big jump in the poaching of key professionals coupled with a surge in demand for skilled employees is driving up salaries in Northern Ireland, according to a report published today.
The report, by accountants PricewaterhouseCoopers, showed that 46 per centof companies were experiencing skilled labour shortages, predominantly of engineers, production and computer specialists.
Over half of the largest companies were finding it hard to fill such vacancies, and the shortage was stifling growth, the report said.
The acute shortages were forcing up salary and wage rates in the larger firms, 40 per cent of which had had to increase wage levels during the past year to retain and recruit workers.
The report added: "A quarter of companies said they experienced extensive poaching of staff by competitors- up from 13 per cent in 1999.
"Almost 45 per cent of all companies experienced some form of poaching of staff. That too, had risen from 33 per cent in 1999."
But the PwC annual review of wage settlements in Northern Ireland showed that business as a whole held wages in check during 2000, rises averaging 3.9 per cent.
It also showed that people were working harder, with overtime now "an integral part of the Northern Ireland business culture"-90% of managers were routinely working extra hours, almost all without pay.
PA