In a positive sign of the long-term recovery of the UK’s job market, vacancies and salaries have seen continuous growth for the fifth consecutive month, according to the UK Job Market Report released by Adzuna, a smarter job search engine.
While this development underscores the resilience of the job market, concerns remain about fully controlling inflation.
The report reveals that in June 2023, the total number of UK job vacancies reached 1,059,153, indicating a rise of 0.78 percent.
Notably, the UK job market has maintained more than a million open vacancies every month since June 2021, a promising indicator of the economy’s revival.
The demand for skilled labour remains high, keeping vacancy levels afloat despite challenges posed by economic uncertainties, inflation, and layoffs in certain sectors, particularly IT, over the past two years.
The year-on-year vacancies have narrowed
Although June’s vacancies were down nearly 12 percent compared to the previous year, the year-on-year gap has narrowed, suggesting a steady recovery. Hiring time has also improved, with the average time to fill roles dropping to 34.6 days, the lowest since Adzuna began recording data.
Moreover, average advertised salaries have witnessed an upward trend, reaching £37,803, up 0.15 percent from May and 3.6 percent higher than June of the previous year. The current cost of living crisis and skill shortages are exerting pressure on companies to offer higher pay, further contributing to salary growth. However, concerns persist that elevated wages may delay relief from high interest rates in the coming months.
The report highlights varying trends across different sectors. Creative and Design, Hospitality and Catering, Legal, and Manufacturing sectors experienced modest increases in monthly job vacancies. IT, which had faced a decline, showed signs of slow recovery with a slight increase in available job roles. On the other hand, sectors like Consultancy, Graduate Jobs, and Logistics and Warehouse jobs continued to experience monthly declines.
Despite the overall recovery, nearly 80 percent of sectors are still witnessing annual falls in vacancies compared to the previous year. Sectors like HR & Recruitment, PR, Advertising and Marketing, and Sales have been the most affected. However, Engineering and Energy, Oil and Gas are among those experiencing growth in hiring on a year-on-year basis.
Which sectors have seen the most vacancies?
The education sector has seen the biggest annual increase in vacancies, with Teaching jobs rising by 34.1 percent compared to the previous year, and over 120,000 teaching positions available. However, this surge has led to increased competition and a shorter average time to fill roles, creating challenges for schools facing widespread teacher strikes and preparation for the new academic year in September.
Regional trends indicate that Northern Ireland is leading in salary growth, with a significant increase of 10.16 percent since the previous year. Other regions like Yorkshire and The Humber, East Midlands, and Wales also experienced positive salary growth, except for London, which continues to show a decline in salaries, albeit with a reduced gap.
City-level data revealed that Cambridge, Guildford, and Chelmsford are among the best places to find work, with low competition for jobs and attractive salaries. Overall, competition for jobs in the UK slightly increased in June, indicating a slight rise in the number of job seekers.
In terms of job trends, warehouse work has become the most sought-after job on Adzuna’s Intelligence Portal, surpassing Social Care. There has also been an increased interest in lorry driving roles and cleaning jobs.
What does the future look like?
Experts and analysts view the sustained growth in vacancies and salaries as positive indicators of the job market’s recovery. However, concerns about inflation and the need for inclusive, flexible, and secure job opportunities persist, urging the government and employers to take proactive measures.
The monthly UK Job Market Report by Adzuna provides valuable insights into employment opportunities across the country, helping job seekers and policymakers make informed decisions. As the job market continues to evolve, monitoring these trends remains crucial for ensuring a stable and thriving economy.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
- Amelia Brand
- Amelia Brand
- Amelia Brand
- Amelia Brand
