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Competition for jobs eases in June as employers create more vacancies

Competition for jobs eases in June as employers create more vacancies

 Highlights

2.9 jobseekers for every vacancy in the UK, down from 3.2 in June 2012 and consistently falling since February 2013. 

Job vacancies up 2.5% year-on-year to 504,913 vacancies in June 2013

Average salary falls 2.1% year-on-year, down 0.9% from May to &pound33,414 p.a., as lower wages prop up jobs market and sustain hiring

Advertised salaries down &pound1,670 p.a. in real terms since June 2012

Competition in Scotland becoming tougher, with currently 6.4 jobseekers per vacancy in Scotland, up from 6.0 in December 2012

Manufacturing the fastest growing sector, advertising 6,173 vacancies in June, an increase of 6.1% compared to December

Competition for jobs has fallen for five consecutive months as UK employers create more vacancies, according to the latest UK Job Market Report from Adzuna.co.uk, the search engine for jobs. The number of jobseekers per vacancy has fallen from 3.3 in February 2013, to 2.9 in June 2013 it now stands at its lowest level since January 2009.

The number of advertised vacancies rose to 504,913 – 2.5% higher than in June 2012, and up slightly from May 2013. Fewer jobseekers per vacancy, and more jobs on offer, suggests employment levels will continue to improve throughout the summer.

The average advertised salary in June 2013 stood at &pound33,414 p.a., 2.1% lower than that in June 2012, equating to a drop of more than &pound700 over the year. Factoring in inflation, wages are down &pound1,670 in real terms from last year.

Flora Lowther, head of research at Adzuna, explains: “The latest ONS figures show that employment dipped slightly in the first quarter of 2013. It’s clear that the record economic growth of 0.6% in Q2 is driving job creation across Britain. Greater employer confidence has resulted in a more robust labour market this month, as an overall recovery looks hopeful. Data from the ONS also shows that unemployment has fallen by 57,000, which means competition for jobs is easing."

Chart 1

May 2013

June 2013

Month Change

12 month change

UK Vacancies

504,478

504,913

0.1%

2.5%

Jobseekers per Vacancy

3.2

2.9

-9.1%

-10.2%

Av. Advertised UK Salary

&pound33,720

&pound33,414

-0.9%

-2.1%

As more vacancies open up, more Britons are returning to work with both unemployment levels and competition for jobs easing. The number of jobseekers per vacancy was 10.2% lower than in June 2013 than in June 2012, as the number of job vacancies on offer has grown 2.5%.

Where are all the jobs?

Adzuna, through collecting every online job vacancy and analysing data in real time (http://www.adzuna.co.uk/jobs/uk#statsmapview), reveal that London and the South East still have a vastly disproportionate share of job vacancies in the UK despite a slightly narrowing north-south divide. 46% of all job openings in Britain are in London and the South East, with just 3.3% in the North East and 1.7% in Wales. The south of England continues to be the region with the highest average salaries. In London, the average advertised salary sits 25% higher than the UK average at &pound41,795. Salaries in the South East are the second highest on average, at &pound31,136 in June.

Six of the ten areas with the lowest ratio of jobseekers to vacancies were in the South East. Oxford, Reading, Winchester and Guildford all have less than one jobseeker per vacancy. In the North the story is very different. News of Scottish unemployment rising for the first time this year, in conjunction with a 6.7% fall in advertised job vacancies, has resulted in 6.4 jobseekers for every available role. Aberdeen is the only bright spark north of the border and remains the easiest city in which to find a job this month, with just 0.37 jobseekers for every advertised vacancy. The strong local economy in Aberdeen – led by a vibrant Energy Oil & Gas industry – explains why competition is so low.

Flora Lowther comments: “The labour market may appear to be making strides towards improved health, but underneath the surface lie several areas of concern. The narrowing north-south divide in job creation does not disguise the regional disparity with new vacancies skewed disproportionately towards the South East. Competition for jobs remains tough in the North, with its economic recovery lagging behind most other parts of the country. In Wales, although competition has eased since December 2012, the average salary on offer has fallen by &pound2,300 p.a. over the same period, although with inflation running at 2.9% the real-term fall in wages is well above this figure. Lower competition may attract further jobseekers to the region, but the drop in wages could well send them running to other parts of the UK where there are more jobs on offer, and where wage growth is far more positive.”

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