ONE York employer has had to increase the wages of all its staff by more than a fifth.

The finding is revealed in an economic update by City of York Council, which highlights a raft of challenges city businesses and residents including strike action, heatwaves, government turmoil, and the death of a monarch.

The quarterly report, prepared for a council meeting, also cited rising prices, especially for energy, labour shortages, and a need for them to increase pay, as they face other rising costs, plus a weaker pound.

Recruitment continues to be “a major concern” for businesses in York, with one large city employer recruiting from further afield and promoting remote working where possible.

“This has helped recruitment, but as more companies have followed this practice, it is becoming more difficult to find recruits,” it said.

“There are also wage pressures across most sectors, with staff expecting upward of 5% increase in salary as a minimum, reflecting the current rate of inflation. Wage demands for remote workers is increasing even faster.

“One company with multiple sites is seeing remote recruitment wage demands come closer to London wage rate.  Employers continue to report that they are struggling to find the people with the right set of skills. One company has increased all staff wages by 21% to retain staff and ease recruitment pressures,” the report continued.

Businesses are also reeling from other higher costs, which increasingly they are having to pass on to their customers, though not all can.

The report noted: “Businesses have also reported a sharp increase in transport costs. Companies importing are seeing delivery costs escalate and, in some cases, this is being priced separately. This is also linked to disruptions in the supply chain, especially from the Far East. This is affecting both deliveries and imports.”

China’s Covid-19 lockdowns were to blame, but this is now easing, but there are growing concerns over similar disruptions from the European Union, due to its Winter gas use reduction plans.

The report noted there are no figures for local energy bills but the Federation of Small Businesses (FSB) estimates that electricity and gas bills for businesses will have doubled or trebled, or in some cases increased by four-to-five fold, this quarter.

The number of job vacancies in York persists at high levels, with 3,828 job vacancies within 5 miles of York City Centre reported the job website at the start of October. The average number of vacancies across Q3 2022 was 3,720 job vacancies per week, with that figure continuing to rise since the council began recording the total in August 2021.

Furthermore, the report also noted the number of ‘economically inactive’ citizens at 23,400, which though an increase of 800 on the previous corner, was among the lowest in 20 years.