Salaries Decline as Job Market Stagnates Despite Economic Recovery

Advertised salaries for new jobs have dipped for the first time since October, despite green shoots in the economy, according to new research from Adzuna.

Average advertised pay fell 0.1 per cent to £38,765 with the job market stagnating throughout the month of May.

The research found that vacancies were on the rise for new teachers ahead of the new academic year, while openings for nurses and healthcare staff declined.

The job firm suggested that the fall in wages could be due to an increase in vacancies for entry-level or junior-level roles with lower pay.

“Hopes that a return to growth would result in greater confidence in hiring were not reflected in job vacancies in May, which remained essentially flat. However, there were slight increases in roles in Travel, Teaching and Manufacturing – areas where there have been some entrenched staff shortages,” said Andrew Hunter, co-founder of Adzuna.

“In the meantime, salaries have fallen slightly month-on-month pointing to a slightly less tight labour market and perhaps indicating that companies are beginning to post more junior and entry-level roles.”

Meanwhile, Dr Adeshola Cole, CEO of Tritek Consulting, said: “Building a highly skilled workforce is crucial to driving growth and boosting the UK’s jobs market. So many young people, particularly those from diverse backgrounds, are missing out on opportunities to learn crucial skills such as AI and analytics, and this has to change. Widening access to the technology industry, through apprenticeships and specialist courses should be a top priority for the next government, and it’s also crucial that businesses work with specialist training partners to upskill and reskill existing staff.”

Regionally, Cambridge was found to be the UK’s top location for job hunters, with just 0.34 jobseekers per vacancy, followed by Guildford and Exeter.

Bradford was revealed as the most difficult place to find a job, with 7.94 jobseekers per vacancy in a crowded job market.

Khalid Talukder, co-founder, DKK Partners said: “The UK economy is a powerhouse of dynamic skills, yet far too many talented young people are still missing out on exciting careers in fintech, AI and analytics. Tackling this problem is no easy task, but getting the next generation to explore opportunities in tech and financial services will be crucial in building a long-term talent pipeline to fuel growth. Key to this effort is ramping up investment, tax incentives for FinTechs, training, support, and apprenticeships, so that more people get access to and can thrive in these crucial industries.”

Derek Mackenzie, CEO of Investigo commented: “In challenging economic times, building a national talent pipeline of candidates equipped with the latest digital skills is crucial to boosting the jobs market and driving growth. Thousands of companies are still operating without the talent they need to thrive, with many struggling to recruit and train candidates in core areas such as AI, analytics, and cyber security.  The jobs market may have taken a hit, but the fundamentals remain robust. Bouncing back requires a much greater focus on developing high skilled opportunities for the next generation in technologies that will drive economic growth for the long term.”