Year-on- year percentage increases for both salaries and vacancies are at their joint lowest since 2015, according to the latest UK Job Market Report from Adzuna
As higher inflation has impacted the UK economy, the effects are trickling down into the labour market and taking their toll on wage growth. UK salaries have struggled to match up to their September 2014 high of £34,695. March 2017’s figures are down 3.8% annually to currently reside at £32,525.
Despite the strain on year-on- year growth, UK salaries are continuing to increase month-on- month and have steadily increased over the past four months. In similar fashion, UK vacancies have reached a four-month high, as total figures for April 2017 are currently at 1,156,701.
According to recent forecasts in the International Monetary Fund’s Economic World Outlook, global growth this year is likely to reach up to 3.5%, above its 3.1% prediction in 2016. Therefore, vacancy and salary figures are currently performing at an expected level.
A separate survey of 600 firms by the Recruitment and Employment Confederation (REC) suggest more than two in five employers who had difficulty recruiting candidates said they had increased the salary on offer. This suggests a positive outlook for salary and vacancy growth as the battle between attracting and retaining a strong, widespread talent pool while simultaneously keeping current employees happy and satisfied reaches boiling point.
With inflation and wage growth at loggerheads, competition for jobs has fallen as a result to 0.45 people per vacancy. This highlights the variety and opportunities available for job seekers that continue to crop up in the midst of political confusion.
Graduates awarded a first class honours in pay packages
According to Adzuna data, graduate salaries are up by 2% year-on- year to currently stand at £24,429, with 16,743 total vacancies. Employers such as Aldi are offering lucrative pay packages to attract the best graduates which requires them to think outside of the box and secure the best possible opportunities given number of permanent entry-level graduate jobs has fallen by 5% according to the IPPR think tank.
Not only has wage growth played a big role in the labour market, but internships remain a dark horse. They are an invaluable platform for graduates looking to transition from lecture theatres to the workplace. Following the report from the IPPR, estimates show that the number of internships has risen by as much as 50% since 2010, as the number of advertised graduate-entry jobs has sharply declined. The perception of internships has shifted from being an added extra to a must-have on a CV, particularly for graduates.
The social work sector has faced a tough time in the midst of wider NHS problems and experienced particular difficulties around staffing, funding and an ageing population. Further pressures were felt following a letter to the Prime Minister from the chairman of the UK Homecare Association saying the adult social care system has begun to collapse.
Technology is the key to a solid post-Brexit economy and will likely take UK productivity to new heights but it could impact opportunities and salaries in some sectors – logistic and warehouse jobs have already been impacted and could be extinct in 10 years.
The rise of artificial intelligence means that robots and automated software may reclaim low-skilled jobs in the near future starting from the ground up. As a result, logistics & warehouse jobs have been listed as one of the worst performers according to Adzuna data, as average salaries have experienced a year-on- year decrease of 13.3%, at £27,237.
Counter-intuitively given the looming general election and potential threat to the property market, jobs in the sector remain attractive as annual salaries rise by over 3%. Often commission based, these roles tend to appeal to a younger audience, looking for fast-paced careers, client-facing interaction and flexible opportunities to work both off and on site.
In terms of the most searched-for jobs on the Adzuna site, factory skilled work such as packer roles are building momentum. This suggests that a fragment of the labour market demands low- skilled, flexible work that is often temporary to accommodate for changing circumstances and ultimately generate higher disposable incomes.