UK vacancies on the rise as competition for jobs cools

• Total number of UK vacancies increases - up 3.5% from 1,088,353 in January to 1,126,376 in February
• Advertised wages creep gradually upwards – improvement of 0.3% from £32,420 in January to £32,520 in February
• HR & Recruitment Jobs currently the most well-performing sector in terms of wage growth – annual increase of 4.6% to stand at £32,042
• London and South East England continue to be hardest hit regions – average salaries down 4.4% year-on-year in both areas
• Competition per vacancy begins to cool off following rise in vacancies -jobseekers per opening currently sits at 0.47

The total number of UK vacancies increased by 3.5% to 1,126,376 in February, according to the latest UK Job Market Report from Adzuna.co.uk.

This represents a year-on-year increase of 0.9%, highlighting the growth within the jobs market and the diversity in terms of opportunities available for jobseekers.

In terms of salaries, monthly wage growth has started to pick up speed, rising 0.3% between January and February. Despite this marginal increase from £32,420 to £32,520, wage inflation is not running at the same speed as vacancy growth. However, the National Minimum Wage is set to increase this year, in line with Phillip Hammond’s Autumn Statement.

While UK inflation continued to rise in February as food and fuel prices are on the up, salaries are experiencing a relative lull. Despite the employment rate remaining at its highest level, it is no surprise that wage growth is improving at a rate much slower than anticipated. Following recent reports, the value of the pound rose to a three-week high against the dollar suggesting a positive increase may be on the horizon. 

With competition per vacancy cooling off following a rise in advertised openings, the labour market at present has become saturated with multiple opportunities for jobseekers and employees of all skill sets at different levels, resulting in competitive figures resting at 0.47 per vacancy.

Table 1: Total advertised vacancies and UK salary

“Despite this, given the restricted growth potential of advertised salaries at present, employees may benefit most from staying put in their current roles and waiting for wages to pick up. For jobseekers, it is not all doom and gloom as the expanding choice of vacancies on offer suggests they are not tied down to traditional full-time employment roles. Companies offering flexible contracts as well as the gig economy provide a safety net for those looking to evolve rather than be swept away in the midst of the uncertain political climate.

“On a positive note, a clear path has been paved for those looking for a new lease on life and change in career path, as competition per vacancy has decreased, suggesting there is more ways than one to rise the ranks for those of all ages.”

HR & Recruitment sector outperforms other sectors

The ‘war on talent’ was a term first coined by McKinsey & Co twenty years ago and two decades on employers are finding the recruiting landscape just as unforgiving. Matters have been further complicated by recent speculation as to whether Brexit plans will restrict the free movement and the flow of workers into the EU, impacting on the UK talent pool.

Therefore, recent gains in average salaries for HR professionals & recruiters reflect this ongoing difficulty. As a result, the HR & Recruitment sector has outperformed all other industries to become the profession with the biggest annual wage growth (4.6%). According to Adzuna’s jobs data, average advertised salaries currently stand at £32,042, with 17,945 current vacancies.

In terms of the most searched-for jobs on the Adzuna site, customer delivery drivers for Tesco are proving the most popular, followed by postal delivery workers in second place. Vacancies on the railways are the third most viewed opportunities.

Doug Monro, co-founder of Adzuna, comments: “HR & Recruitment jobs have long formed a significant part of the labour market as companied vie for the hottest talent. These fast-paced, often commissioned based roles, aren’t for the faint hearted, attracting dynamic candidates with a strong ability to communicate effectively and with a competitive spirit. It is encouraging this sector continues to flourish despite the difficult political climate.

“With year-on-year salary growth up 4.6%, the reputation of HR & recruiters continues to evolve and the popularity of the sector is on the up. Regardless of whether jobseekers or employees see this as a short or long-term career path, the sector is a perfect opportunity to gain transferable skills such as communication, due diligence and IT skills that could help candidates rise up selection ranks in other areas.”

Table 2: Best performing jobs sectors in the UK – annual salaries

Poor regional wage growth across the UK

According to The Sunday Times Best Places to Live Guide, Bristol was named the best place to live in Britain based on its house prices, services and amenities. In addition to this, Adzuna’s jobs data shows that South West England has the lowest annual salary decline in comparison to all other regions across the UK. Advertised salaries in the region currently stand at £30,243 which is down by just -2.3% year on year, compared to bigger declines elsewhere. For those feeling drawn to the area, there are currently 81,558 advertised vacancies across the region.

Across the UK, regional wage growth has continued on a downwards spiral. In particular, areas such as London and South East England have experience the highest salary decline (both down 4.4%). Despite the National Minimum Wage increasing in April 2017, living costs especially in the South of England are becoming increasingly high putting a strain on day-to-day affordability for individuals.

Doug Monro, co-founder of Adzuna, comments: “Wage growth continues to become an important topic for jobseekers, employees and employers as the rise in inflation has tempered salary improvements. However, it is crucial to remain optimistic to these changes and the political climate remains uncertain. The labour market has proved itself to be resilient to these changes and there is no reason as to why wage growth may not eventually catch up.

“It is important to remain mindful of companies such as Goldman Sachs who are exploring the possibility of relocating half of their London workforce to Europe and New York that may potentially shake up the labour market. However, the grass may not always be greener on the other side as the UK post-Brexit economy is beginning to build momentum and create a new wave of prosperity for the British economy.

“With cities such as Bristol receiving the recognition they deserve, the UK economy can benefit from the popularity and opportunities from all areas. Hopefully this will entice future business investments to the region and create job opportunities for the locals— creating healthy competition with the capital.”

Spring Budget 2017 is a triumph for the jobs market

With the dust finally settling on Chancellor Phillip Hammond’s Spring Budget, it is clear to see the long lasting implications for the labour market. The emphasis on tech skills driving the UK economy forward and the investment in educational programmes for 16-19 year olds in the form of T-levels, is an insight into the potential of the post-Brexit economy.

The labour market continues to lead decision-making and this means jobseekers, employees and employers are likely to benefit across the spectrum. The post-Brexit economy looks promising and it is an opportunity to place the UK at centre stage as a powerhouse fuelled by a high-tech, fast-paced, dynamic economy made up of shared wealth and interconnected productivity.

In addition the National Insurance increase U-turn for the self-employed further highlighted that the government are taking on board the concerns of the labour market and placing the views of the people above profit-maximisation.

Doug Monro, co-founder of Adzuna, concludes: “It is encouraging to see decision making being led by the labour market as well as a united front from the government on how to boost UK productivity. The post-Brexit economy is taking shape and becoming more of a reality. Despite regional salary growth declining across the UK, the future looks promising and it is important that company’s such as Dyson are celebrated for their belief and investment in the UK economy. It has got the ball rolling following its plans to begin work on a new multimillion-pound research and development centre which has been described as a "vote of confidence" in the UK by Theresa May and we hope other large firms are inspired to follow suit. 

“The UK will thrive through an approach of shared wealth amongst all regions not just heavy reliance on the capital to generate revenue. The U-turn on National Insurance is a signal that British entrepreneurship is treasured and highly valued in serving our economy.”