The UK job market faced a significant downturn in December, with a notable decline in job vacancies reflecting decreased business confidence.
- Job vacancies fell by 6.95% in December, marking the lowest figure in over three years, with further declines anticipated in January.
- Increased competition for available roles has emerged, with 1.68 jobseekers per vacancy, the highest since September 2021.
- Despite a decline in entry-level opportunities, advertised salaries have seen a slight increase, suggesting a shift towards senior roles.
- Teaching remains a resilient sector with an increase in job vacancies, contrasting with declines in other industries.
The UK job market experienced a sharp decline in vacancies in December, marking the biggest monthly fall in over three years. Vacancies dropped by 6.95%, bringing the total to 929,138, signalling a challenging start to the year for job seekers. This downward trend is expected to continue into January, with predictions of a further decrease of between 6% and 8%. Such declines echo the significant drop witnessed in June 2020 during the COVID-19 pandemic.
The current landscape shows an increase in competition for jobs, with 1.68 jobseekers per vacancy, compared to a low of 1.45 earlier in 2023. This heightened competition makes it increasingly difficult for individuals seeking new positions, particularly as companies appear to be focusing on hiring for senior roles.
Despite the reduction in vacancies, advertised salaries have risen slightly by 0.96% monthly to £37,577, and 2.28% annually. This suggests a potential lack of junior positions, as companies might be prioritising senior-level recruitment. Additionally, over half of job adverts, 50.2%, omit salary information, complicating the decision-making process for potential candidates.
Notably, the teaching sector defies this trend with a 4.39% increase in vacancies from November and a substantial 38.32% rise compared to the previous year. This sector is characterised by the shortest average time to fill roles at 30.9 days, compared to an average of 35.6 days across all sectors.
Other sectors have not fared as well; retail, manufacturing, hospitality, catering, and trade & construction all saw significant declines in job vacancies. The availability of graduate roles also continues to suffer, with an 8.4% reduction in job advertisements compared to November.
In terms of advertised salaries, sectors such as creative & design and retail have seen increases of over 2%, whilst IT and maintenance salaries declined by 1%. Social work has seen the most considerable salary increase of 11.54% compared to last year, indicative of its growing demand.
Regionally, the East Midlands leads in salary growth, with an annual increase of 7.14%. Although Northern Ireland typically ranks high in salary growth, it has seen a modest 2.81% increase this time, while London shows a slight salary decrease of 0.04%, an improvement from the previous month.
Cambridge remains the top city for jobseekers with low competition rates, followed by Oxford and Reading. Conversely, Bradford, Birmingham, and Sunderland present high competition for fewer vacancies.
Andrew Hunter, co-founder of Adzuna, notes the disappointment jobseekers may feel due to the reduction in vacancies. However, regional salary growth and a slowing decline in IT salaries suggest potential improvements. Tony Wilson from the Institute for Employment Studies highlights concerns over the slow rebound in recruitment post-Christmas, indicative of economic uncertainties.
The UK job market is navigating a challenging period, reflecting broader economic uncertainties, but shows resilience in key areas like teaching.
