The latest research indicates a slight decrease in advertised salaries in May, amidst a stagnant job market.
- A drop of 0.1% in average advertised salaries was recorded, despite economic recovery signals.
- Increased vacancies in junior-level roles are believed to contribute to the decline in salaries.
- The teaching sector observed a rise in vacancies, contrasting with a decrease in healthcare job openings.
- Experts stress the importance of improving access to technology sectors to sustain economic growth.
The job market experienced an unexpected stagnation in May, marked by a minor reduction in average advertised salaries. This shift occurs despite promising signs of economic recovery, as reported by recent research from Adzuna. The average advertised pay saw a minor decline of 0.1%, settling at £38,765. This downward trend is suggestive of a less tight labour market, although there remain pockets of sectoral growth.
One significant factor contributing to this trend is the rise in job vacancies for entry-level or junior-level roles, which traditionally offer lower pay. This development aligns with the observation of increased vacancies in specific industries such as Travel, Teaching, and Manufacturing. According to Andrew Hunter, co-founder of Adzuna, ‘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.’
A notable exception emerged in the teaching sector, where a rise in job openings ahead of the new academic year contrasted with a decline in positions for nurses and healthcare staff. This sector-specific behaviour underscores the varied recovery trajectory across different job markets. On a regional level, Cambridge stood out as the most favourable area for job seekers, boasting a low competition rate with 0.34 jobseekers per vacancy. Conversely, Bradford faced a challenging job market scenario, with 7.94 jobseekers per vacancy, signalling intense competition.
Industry experts, including Dr Adeshola Cole, CEO of Tritek Consulting, emphasise the necessity of developing a highly skilled workforce to drive economic growth. Dr Cole, highlighting the importance of skill acquisition, particularly in AI and analytics, asserts, ‘Widening access to the technology industry, through apprenticeships and specialist courses should be a top priority for the next government.’ This statement echoes the need for businesses to collaborate with training partners to bolster employee skill sets.
Additionally, Khalid Talukder from DKK Partners and Derek Mackenzie of Investigo stress the significance of fostering opportunities in fintech, AI, and analytics. They advocate for increased investment, tax incentives, and training to cultivate a robust talent pipeline capable of sustaining long-term growth. Dereck Mackenzie highlights that despite current hurdles, ‘The jobs market may have taken a hit, but the fundamentals remain robust.’ Enhancing high-skilled opportunities in sectors pivotal for economic progress remains a crucial strategy.
The job market’s current state points to a nuanced recovery, necessitating innovative strategies to align workforce skills with emerging industry demands.
