Job vacancies hit record lows for the second time this year amid Brexit uncertainty

●     Advertised vacancies drop 8.6% year on year as Brexit uncertainty stifles the UK job market.
●     Job vacancies have fallen for the third consecutive month with a loss of nearly 100,000 jobs year on year, spelling an unsteady year ahead.
●     Healthcare and nursing vacancies are the only industry to defy the slump, sparking concern for the NHS with 68,833 unfilled positions.
●     Salaries continue to see year on year growth as it pushes above inflation.
●      The North East see vacancies plummet by 42% year-on-year, while Yorkshire and the Humber bucks the trend with an 11% increase in vacancies

Job vacancies have dropped 8.6% in the last 12 months amid Brexit uncertainty, according to the latest market report from job search engine Adzuna.

The number of advertised roles has fallen month on month since March, sparking concern for the future of the job market. May 2019 saw UK vacancies fall to the second lowest point in the past five years of reporting, with vacancies in January 2019 hitting an all-time low, sparking concern that Brexit delays are fuelling apprehension to hire.

Vacancies in the UK have fallen to 1,035,387, dropping 97,033 in advertised vacancies since the same period last year. The gradual decline in vacancies as we approach the typically quiet summer period indicates the beginning of a trend as the market appears to stagnate. Losses are prominent across the UK with all but two regions seeing notable declines in vacancies.

Healthcare and nursing is the only sector to defy the vacancy slump and see consecutive month on month increases this year. Despite the opportunity for healthcare professionals, the trend is a worry for the NHS with 68,833 unfilled positions. If the trend continues it could spark concern for the NHS as staff shortages have been unsettled amid growing Brexit concerns.

It’s not all bad news for jobseekers, as salaries continue to see notable year on year growth (+4.2%) and push above inflation (+1.9%).  Salaries are not showing any signs of slowing down with employees keen to boost salaries in a bid to find the right talent. Despite the drop in vacancies, competition for job roles are still at record lows, with a ratio of 0.22 job seekers per vacancy in May.

Andrew Hunter, co-founder of Adzuna, comments: 

“Employers appear to be uneasy and hesitant to invest in additional staff as Brexit delays continue. As EU negotiations move into the typically quiet summer months, we do not expect to see an immediate recovery in the job market as job-seekers turn their attention to the summer holidays. It’s not all bad news for job seekers as salaries still push above inflation, with employers eager to find the right talent. This means there are still opportunities for jobseekers to find their perfect role and command higher salaries.

The North East of England sees vacancies plummet

The North East has seen vacancies plummet by an astonishing 42% year on year, with the number of vacancies currently standing at 16,782 compared to the 29,059 roles available 12 months prior. The South East of England has seen vacancies drop 11% to 170,874 year on year, while Eastern England also takes a hit with a 9% year-on-year drop to 97,801. Yorkshire and the Humber is the only region to buck the trend to see at a significant increase year-on-year with vacancies increasing from 54,143 to 61,097, with West Yorkshire leading demand.

Wage growth boosts lower earners

Domestic work and cleaning jobs have seen this biggest growth in salary, with demand pushing salaries up 15.1% year-on-year to £20,002. The sector which was once dominated by the super-wealthy is seeing an influx of ordinary working families looking for nannies, gardeners and cleaners. Hospitality and catering jobs have also seen notable increases with salaries up 7.1% to £23,338. The customer service sector also looks healthy with 6.8% increase to £22,504.

Table 1: Number of vacancies per region, annual fluctuations

*ONS Employment in the UK: June 2019: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/employmentintheuk/latest