Despite signs of economic recovery, advertised salaries in May decreased.
- The average advertised salary declined by 0.1% to £38,765.
- While vacancies for teaching roles increased, those for nurses decreased.
- A shift to more junior-level roles is cited as a reason for declining wages.
- Cambridge leads as the UK’s best location for job seekers, while Bradford lags behind.
Despite a recovering economy, advertised salaries for new jobs experienced a downturn in May, marking the first decline since October. The average advertised pay decreased by 0.1 per cent, settling at £38,765. This stagnation in the job market occurs even as economic indicators suggest a positive trajectory.
Research indicates a rise in vacancies, but these are predominantly for entry-level or junior-level positions, which typically offer lower salaries. This shift could be contributing to the observed decline in average advertised wages. Additionally, certain sectors such as travel, teaching, and manufacturing have seen modest increases in job roles, contrasting with a decline for positions in nursing and healthcare.
Andrew Hunter, co-founder of Adzuna, noted, “Hopes that a return to growth would result in greater confidence in hiring were not reflected in job vacancies in May, which remained essentially flat.” He highlighted that salaries have fallen slightly month-on-month, pointing to a less tight labour market and a rise in entry-level job postings.
Location also plays a significant role in the current job market. Cambridge emerged as the top location for job hunters, with a ratio of just 0.34 jobseekers per vacancy. Conversely, Bradford presents a challenging environment with 7.94 jobseekers for each vacancy, illustrating regional disparities.
Experts stress the importance of building a skilled workforce to drive growth in the UK’s job market. Dr Adeshola Cole of Tritek Consulting emphasises the necessity for increased opportunities in AI and analytics. Sector leaders advocate for wider access to the technology industry through apprenticeships and training as crucial components of future economic development.
The slight drop in salaries amidst a stagnant job market highlights the ongoing challenges and regional disparities in the UK’s employment landscape.
