The UK job market faces challenges with vacancies dropping significantly ahead of summer.
- Annual job vacancies see a sharp fall of nearly 20% from 2023 figures.
- Despite economic growth, hiring slows as the summer lull begins early.
- Professional services sectors show positive hiring trends despite overall market decline.
- Uneven salary transparency persists as challenges in the job sector continue.
The UK job market is experiencing notable challenges as annual job vacancies have decreased by almost one-fifth, a drop of 19.49% from the previous year, amounting to 852,703 vacancies. This decline is significant despite a recorded GDP growth of 0.4% in May 2024, indicating that the economic upturn has yet to favour job seekers. As summer approaches, traditionally a period of reduced recruitment activity, job seekers are facing mounting difficulties.
It is observed that the job seeker figures are on the rise, with 1.95 individuals vying for each live vacancy, up from 1.91 in May. This ratio represents the highest level observed in three years, last surpassing this mark in June 2021. Concurrently, job advertisements are becoming less persistent in the market, listed for an average of 36 days, compared to 36.9 days the previous month. As vacancies fall, advertised salaries are on an upward trajectory, increasing by 0.18% compared to May and a significant 2.72% on an annual basis, reaching an average of £38,843.
The trend of rising salaries is, however, coupled with a decrease in salary transparency. Currently, less than half (47.7%) of job adverts disclose salary details, which is a decline from 49.5% in May. This represents the lowest level of salary disclosure since Adzuna began monitoring this metric in 2016. Historically, June has seen lower transparency, with 58.3% in June 2022 and 50.2% in June 2023 showing salary information.
Certain professional sectors are beginning to rebound with an uptick in hiring. The Legal sector saw the highest surge in job postings, increasing by 8.46%, whereas PR, Advertising & Marketing, and Creative & Design sectors exhibited their first growth in vacancies since early 2024. Notably, the IT sector also experienced its first positive change in vacancy numbers since June 2023. Additionally, there has been significant growth in Domestic Help & Cleaning and Teaching roles, outlining early signs of recovery in selective industries.
Conversely, some sectors are experiencing a decline in vacancies. Notably, Admin, Healthcare & Nursing, and Travel sectors registered a reduction in job postings this past month. Hospitality & Catering too faced a downturn, an unusual trend given the typical seasonal increase in demand during summer months. Yearly figures reveal that Teaching and Travel are the only industries demonstrating annual growth in vacancies, standing at 10.12% and 1.54%, respectively.
While some industries struggle with job vacancies, others such as Energy, Oil & Gas, are witnessing substantial salary hikes, largely driven by a skills shortage and geopolitical influences impacting the market. The West Midlands remains at the forefront of salary growth, securing its position as the region with the most accelerated salary increments over the past eight months. Meanwhile, London maintains the highest average salaries across the UK, though growth has been relatively muted.
As the UK navigates economic recovery, the job market reveals mixed signals with declining vacancies but rising salaries in select sectors.
