Check the Pulse! Job Market Revival post-Recession.
5th January 2015
The latest UK Job Market Report from Adzuna has found annual salaries experiencing the highest annual increase since the recession. According to the site www.adzuna.co.uk,the average advertised salary in November was £34,549, a 5.8 per cent increase compared to £32,651 a year ago. These salary increases come as the Consumer Prices Index (CPI) grew by just one per cent in the year to November 2014, down from 1.3 per cent in October. This means that average annual salary increases continue to outpace CPI inflation as a trend towards real wage growth continues for the fourth month in a row.
The number of jobseekers per vacancy reached a record post-recession low of 0.89 in November 2014, making it the second consecutive month since the financial crisis in which there have been more advertised vacancies than jobseekers. This is also the tenth consecutive month in which competition for jobs has fallen.
The number of advertised vacancies reached 949,788 across the UK - the largest number of advertised jobs since the recession, overtaking the previous record of 936,596 vacancies in October 2014. There was a 23.6 per cent year-on-year increase in available jobs: just 768,289 vacancies were advertised in the equivalent month last year.
"The job market has seen significant revival over the past year," Andrew Hunter, co-founder of Adzuna explains. "The most recent figures provide a solid base for optimism as we head into 2015. But it's important not to rest on our laurels. The fact that the number of advertised job vacancies has continued to blossom over and above the number of jobseekers in November is definitely a sign that the labour market has cultivated momentum over the course of 2014, but this peak in advertised vacancies at the close of the year may owe as much to seasonal work as it does to the resurgent core of the jobs market.
"Some uptick in advertised vacancies during the lead-up to the festive period was expected.,`" he continues. "However, seasonal labour does not account for year-on-year record annual growth in average advertised salaries. More vacancies and higher wages have come at the same time as the cost of living crisis starts to ease, leaving more people with more money in the New Year - injecting a feel-good factor into a traditionally glum time of year."
The figures have shown every region of the UK experiencing average advertised salary growth in 2014. While Scotland has had a rough year, in October it was the only region of the UK to experience a year-on-year salary decrease in the wake of instability resulting from the referendum. However the average advertised salary in Scotland grew by 0.53 per cent over 2014. This still leaves it trailing behind the rest of the UK, but suggests that the Scottish jobs market continues to improve despite the political uncertainties of 2014.
At the same time, North East England (11.60 per cent), Yorkshire and The Humber (10.76 per cent) and North West England (8.78 per cent) have jostled Wales (8.44 per cent) out of the pole position it had been enjoying thanks to the Jobs Growth Wales initiative. Average Northern salaries remain lower than in the South, but at the current rates of change this may not remain the case for long - expect the North to surge forward in 2015.
"A manufacturing boom has buoyed the Northern jobs market this year," says Hunter. "The traditional home of manufacturing in the UK is seeing a new demand for highly-skilled labour, which is reflected in healthy annual wage growth. There is a more complicated picture for Scotland, another region where average salaries are tightly tied to a dominant job sector - waning salaries in Energy, Oil and Gas have been compounded across the region by recent political instability.
"However, advertised salaries still managed to grow on average in 2014," he notes. "The margin of growth was undeniably lower than the increases enjoyed by the rest of the UK. Nevertheless, average growth despite the unique setbacks faced by the Scottish jobs market speaks volumes of the market's resilience - there is every reason to hope Scottish salaries and employment will bounce back into the coming year."
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