Advertised salaries fall to 11-month low
The average advertised UK salary was £33,696 in June, down 0.9% from £34,002 in May, the fourth consecutive month seeing increasingly steep month-on-month falls. Salaries have now reached their lowest point since £33,873 in July 2014.
An increase in lower paid and part-time roles has factored into the advertised salaries stagnation. June saw 1,092,030 available UK vacancies, 3.2% higher than the 1,058,425 recorded in May, and 12.8% above the 968,273 six months before, in December 2014.
But the National Living Wage initiative will help boost a significant number of these new roles. The initiative would affect more than 112,000 currently advertised vacancies, meaning 10% of the vacancies currently on offer will benefit. Some 17% of these affected vacancies are in the South East, compared to just 4% in the North East.
Competition for jobs has fallen to a new record low. There were just 0.67 jobseekers per advertised vacancy in June, 6.6% lower than 0.72 in May, and almost half the 1.21 figure seen in June 2014.
Although the Office for National Statistics has reported that the unemployment rate has risen by 0.1% month-on-month, Adzuna’s forward-looking data suggests this is a temporary blip, and that unemployment will fall away again in the summer.
Annual change from June 2014
Jobseekers per Vacancy
Av. Advertised UK Salary
Andrew Hunter, co-founder of Adzuna, commented,“The solid growth in vacancies is the dominant backdrop behind this unemployment uptick. It may even be a sign of greater mobility: as more and more vacancies open up, employees are confident enough to temporarily leave their current job in order to dedicate their efforts to finding a new one. Competition for jobs is continually falling away as the British economy starts to spread its wings again. In that context, this minor fluctuation gives us little cause for concern.
“Likewise, weakening advertised salaries signal an increase in the number of available entry-level, part-time and lower-paid positions. While the National Living Wage should prop up the salaries of those unfairly affected by falling wages, there is definitely still plenty of room for improvement. The new baseline is weighted for London – and that’s the extent of it. As his Northern Powerhouse programme proves, the economic recovery has not been evenly spread across the UK – but neither is all our success concentrated on the capital.
“Moving from the East of England to the North West, for example, will see the spending power of the National Living Wage vastly improve. It’s long past time that some additional complexity was introduced to government wage targets beyond the twin categories of London and & lsquo;everywhere else in Britain’.”