Advertised salaries fall to 11-month low
But a tenth of vacancies set to benefit from National Living Wage changes
On the face of it, things are looking up in the employment market, with over a million advertised vacancies across the nation. On the other side of the coin, however, advertised salaries have fallen to an 11-month low, as growth in the workforce is driven by lower-paid roles and part-time positions, according to the latest forward-looking data from Adzuna.
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 – a sad state of affairs for the British jobseeker.
An increase in lower paid and part-time roles has undoubtedly had an impact on 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 leading-indicator data suggests this is a temporary blip, and that unemployment will fall away again in the summer.
Hardworking healthcare sector buoyed by National Living Wage
If the National Living Wage was implemented now, as many as one in seven (14.4%) new Healthcare & Nursing professionals would be directly affected, and would see advertised salaries rise. There are currently 66,003 vacancies across the sector, and 15,086 of those are minimum wage positions. Across the sector as a whole, the average salary stands at £35,682 in June, 1.8% lower than £36,352 a year ago.
Teaching & Education jobs are the next largest group of vacancies that would experience the direct impact of the new law, with 9,818 positions currently advertised for below the intended living wage, affecting 14.9% of all positions currently advertised.
But it was Logistics & Warehouse positions that saw the greatest proportion of vacancies affected – nearly a fifth (19.5%) of the 36,207 available jobs would experience a wage increase.
Table: Sectors most affected by the National Living Wage
|Job Sector||Total Vacancies||Vacancies Affected by National Living Wage||Proportion affected by National Living Wage|
|Healthcare & Nursing||104,802||15,086||14.4%|
|Teaching & Education||66,003||9,818||14.9%|
|Logistics & Warehouse||36,207||7,067||19.5%|
Average salary growth in the North triple that of the South
The average salary growth for Yorkshire & the Humber retains its lead position with average advertised salary growth of 7.1%. This is 2.3 percentage points above the UK average (4.8%).
Looking at the north as a whole by taking an average of Yorkshire & The Humber, North East England (5.7%) and the North West (5.0%) shows that the average year-on-year salary growth is 5.9%, nearly three times higher than the 2.3% average of the southern regions of the UK, London (0.9%), South East England (1.9%), Eastern England (3.0%) and South West England (3.0%). London had the lowest average annual improvement to advertised salaries in June, while Scotland witnessed a decrease.
Table: Biggest improvers – UK regions by average salary
|Region||Average Salary||Salary % 12 Month Change|
|Yorkshire and The Humber||£30,468||+7.1%|
|North East England||£29,773||+5.7%|
|North West England||£30,175||+5.0%|
|South West England||£30,590||+3.5%|
|South East England||£32,058||+1.9%|
Andrew Hunter explains: “The north is starting to come into its own. Northern employers are expanding salaries far faster than in the south, to try to attract top talent to their expanding businesses. But these things don’t happen overnight, and there are bound to be some delays and growing pains. Infrastructure and housing have as much a part to play in building the north into a well-oiled economic machine as much as attractive salaries. Looking forward, it won’t be long until more people start to realise that the cost of living is seriously tipped in their favour if they can find the right job in places like Manchester, Liverpool and Newcastle.”
Despite salary growth in the north, there is still a clear gap between north and south in terms of competition for jobs. Competition remains stubbornly high in areas like Sunderland, with as many as 4.87 jobseekers per vacancy – over seven times the national average. However, Manchester has cemented its place in the top ten best cities to find a job, with just 0.31 jobseekers per vacancy.
Andrew Hunter concludes: “Manchester is one of the exceptions to the rule, buoyed by a thriving professional services industry which has created many new jobs in areas like law, finance and consulting. Many of our northern cities are making a comeback and competition for jobs is falling fast – albeit not to the same extent that we see in Cambridge.
“The struggle isn’t in pulling these recovering cities up to scratch – it’s working out how to better support those places where businesses are still struggling to flourish and provide opportunities to the local area, cities like Sunderland and Hull. Manchester might be the wunderkind of the Chancellor’s ‘Northern Powerhouse’ scheme, but it’s important not to let one shining example mask a more deeply-rooted problem.”