The UK job market has faced a significant downturn with job vacancies dropping by nearly 20 percent year-on-year to 852,703 in June, the lowest level since March 2021.
This stark decline is detailed in the latest UK Job Market Report by Adzuna, highlighting a challenging environment for job seekers despite a slight GDP growth of 0.4 percent in May 2024.
Rising Competition and Shifts in Salaries
As vacancies decrease, the competition for available positions intensifies. The number of job seekers per vacancy has risen to 1.95 in June, up from 1.88 in May, marking the most competitive job market since June 2021. In contrast, average advertised salaries have seen a slight increase of 0.18 percent monthly and 2.72 percent annually, reaching £38,834, the highest this year.
However, tracking these salary trends is becoming more difficult as salary transparency hits a record low. Only 47.7 percent of job adverts now include salary information, the lowest since Adzuna began monitoring this metric in 2016.
Sector and Regional Variations
While the overall job market faces a slump, certain professional service sectors are showing signs of recovery. The Legal sector saw an 8.46 percent increase in job listings, followed by PR, Advertising & Marketing (3.78), and Creative & Design (3.46%). The IT sector also experienced its first positive monthly growth in vacancies since June 2023, with a 2.01 percent increase.
On the other hand, sectors such as Admin (-5.02%), Healthcare & Nursing (-4.16%), and Travel (-3.17%) saw declines in job vacancies. Hospitality & Catering also faced a downturn, with a 5.32 percent drop in vacancies, contrasting with the usual summer hiring boost.
Regionally, the West Midlands leads in salary growth, maintaining the top spot for eight consecutive months with a 5.48 percent increase. Eastern England follows closely with a 5.45 percent rise. London, despite having the highest average salaries at £44,867, shows minimal growth at 1.45 percent.
Top Cities for Job Hunters
Cambridge emerges as the most favorable city for job hunters, with the lowest jobseeker-to-vacancy ratio at 0.35. Guildford and Exeter follow with ratios of 0.52 and 0.64, respectively. Conversely, Bradford is the most challenging city to find a job, with 8.2 job seekers per vacancy.
Warehouse roles continue to be the most searched for jobs, maintaining their position for 18 months. Cleaning roles have climbed to the second spot, while social care work remains third.
Andrew Hunter, co-founder of Adzuna, commented, “The positive economic growth recorded in the first two quarters of the year has yet to filter through to hiring. Businesses may have paused hiring plans due to the General Election, resulting in nearly a fifth fewer job vacancies compared to last year. However, sectors like professional services and IT show promising signs of recovery. As we enter the summer lull, we may need to wait until September to see significant improvements in job opportunities.”
Summer hiring sunmmary
- Vacancies: Down by 19.49 percent year-on-year to 852,703.
- Job Seekers: Increased competition with 1.95 job seekers per vacancy.
- Salaries: Average advertised salary rose to £38,834, with transparency at a record low.
- Sector Growth: Legal, PR, Advertising & Marketing, and IT sectors show positive growth.
- Regional Salary Growth: West Midlands leads with a 5.48 percent increase.
As the UK navigates through these shifts, job seekers and employers alike will be looking ahead to post-summer months for potential improvements in the job market.
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.
