Ryan FowlerThe UK job market, having experienced significant downturns in vacancies since before the pandemic, is now exhibiting signs of a potential rebound.
The latest UK Job Market Report from Adzuna, a leading job search engine, reveals that February saw 866,242 advertised job vacancies, a slight decrease of -0.14% from January, suggesting a move towards market stabilisation. This subtle shift is buoyed by increases in job openings in sectors like Travel and Maintenance, marking a tentative end to months of sharp vacancy declines.
Despite these positive signs, the job landscape remains challenging compared to the previous year, with vacancies down by -15.11%. This discrepancy has intensified competition among job seekers, with 1.86 candidates for every available position, the highest ratio since August 2021.
Moreover, the average advertised salary in the UK has climbed to £38,478, reflecting a monthly growth of +0.81% and an annual rise of +3.01%. This increase underscores the difficulties companies face in attracting skilled professionals, especially for higher-paying roles. The Bank of England’s Governor, Andrew Bailey, has recently pointed out that the UK might be experiencing full employment, further stressing the competitive job market.
The report also noted an improvement in salary transparency, with over half of the February job postings listing a salary, enhancing clarity for job seekers.
Sector-wise, positive job growth was observed in Graduate and Property sectors, among others, although Retail, Domestic Help & Cleaning, and Hospitality & Catering saw monthly declines. However, the rate of annual decreases across most sectors appears to be decelerating.
Regional trends highlight the East Midlands as having the highest average advertised salary increase, while London also saw positive salary growth. Cambridge emerged as the most favourable city for job hunters, with a low competition rate, in stark contrast to Bradford.
The demand for Warehouse work and Healthcare Support roles continues to dominate, with Social Care also remaining in high demand.
Andrew Hunter, Co-Founder of Adzuna, remarked on the tightening job competition and the record-high average salaries, suggesting that upcoming changes to child benefits and childcare reforms could further affect the UK workforce landscape.
Adzuna’s UK Job Market Report, drawing from over 1,000 sources, provides a detailed overview of employment trends across the nation, offering valuable insights for policymakers and market analysts.
