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UK Job demand slips back in July, but key sectors see record rise

Reed Job Index drops one point to 102

  • Key Sectors buck trend, and rise to highest level since the Index began

  • Manufacturing: 16 % rise from March lows, to record high at 114

  • General Insurance: 27% rise from Index start, to record high at138

  • Accountancy (pre-qualified):14% rise from Index start, to record high at 114

  • Charity & Voluntary: 47% rise from Index start to record high at 147

Employer demand for new UK workers slipped back one point in July compared to the previous two months, to give a Reed Job Index reading of 102. However some key job sectors bucked the trend, with demand in areas from Manufacturing to General Insurance rising to its highest level since the Index began in December last year.
Salaries for new jobs stayed steady to give a Reed Salary Index reading of 95 for the third month running.  While salaries remain five per cent below the December 2009 Index base line figure, the underlying level is stable and just starting to trend upwards to give a national average salary for the Index of £31,909 in July compared to £31,879 in June.
Each month the Reed Job Index tracks the number of new job opportunities and salaries on offer compared to the previous month and against a baseline of 100 set in December last year.   The Reed Job Index is based on data from the UK’s largest job board, reed.co.uk, which every day lists over 90,000 job opportunities from 8,000 recruiters across 37 career sectors throughout the UK.
While overall job demand has edged down, some sectors bucked the trend with impressive rises. Demand reached records Index highs for General Insurance, Charity and Voluntary, pre-qualified Accountancy and Manufacturing staff.   The Manufacturing Job Index high of 116 is a particularly good sign for longer-term economic prospects, while the Public Sector Index record low of 63 is not surprising given this sector’s recently announced cutbacks.
Across the country the picture is mixed. Significantly, given its status as the engine of the UK economy, new jobs in London dipped down, to give an Index reading of 98.   However at the same time job demand has risen in the surrounding South East compared to last month, as well as in North East England, Scotland, the South West and Northern Ireland.
Martin Warnes, Managing Director of reed.co.uk, comments on the Reed Job Index for June:
“Employers are still a little nervous about just how sustainable economic recovery will prove to be, according to the Reed Job Index’s downwards slip in July. At the same time however, some key job sectors bucked the trend, with demand for new staff in these areas rising to their highest level since the Index began. The increase in Manufacturing sector demand is particularly significant, with rises to record levels also seen for General Insurance, Accountancy and Charity Staff.   Clearly while demand in the Public Sector falls back other areas are preparing for future growth, even though it is difficult to predict how robust this will to be over the rest of the summer.”