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Job demand slips back in July, although salaries edge up

Job demand slips back in July, although salaries edge up

Reed Job Index drops three points to 122

Employer demand for new UK workers slipped down three index points (- 2%) in July compared to June, giving a Reed Job Index reading of 122 .

New job demand dropped back across a range of job sectors, including Accountancy, Financial Services and Customer Service, while Banking jobs continued their five month decline from February’s high point.  Demand for new Public Sector staff remained flat, close to half its level when the Index began.

However, other sectors bucked the trend, led by the Retail Job Index, which reached its highest point since the Index began (with retail vacancies 52% above the Index starting point set 19 months ago) supported by rising demand for Leisure & Tourism staff.  Indicators of future economic growth were seen across industrial as well as business services sectors with rising demand for IT & Telecoms, Motoring & Automotive, Purchasing, Transport & Logistics, Construction and Human Resources staff in July.

Overall year-on-year employer demand is up 20 points compared to July last year, and is 22 per cent above the level of December 2009 when the Index’s baseline was set at 100, according to the report compiled by the recruitment website

Salaries for new jobs edged up one point to give an overall Reed Salary Index reading of 99, with salaries increasing further across a range of areas including Accountancy, Hospitality & Catering and Sales.

Across the UK the picture was mixed.  The dip in demand in London and the South East led the overall fall, and was echoed in East Anglia, the North East and Northern Ireland.  In spite of this job demand increased in Yorkshire & Humberside, Scotland, Wales and the South West, while employer demand for new staff reached its highest level in the East Midlands since the Reed Job Index began 19 months ago.  

Martin Warnes, Managing Director of, comments on the Reed Job Index for July:

“Economic confidence at the start of the third quarter appears to have flattened out, according to the latest Reed Job Index figures.  There is residual fragility in the economy which has dampened demand for new staff and continues to restrain salaries.

"However job demand is still 20 per cent up on this time last year and July’s figures include other positive indications for the future.  New jobs increased in key sectors from IT and Telecoms to Construction and the car industry, which looks promising for long term growth, while the 19-month high in retail recruitment suggests employers believe consumer confidence is set to rise."


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