The UK job market experienced a significant decline in job vacancies, highlighting weak business confidence and competitive job-seeking conditions.
- In December, job vacancies saw a notable drop of -6.95%, marking two consecutive months with less than one million available positions.
- Anticipated figures suggest January could continue this trend, with vacancies expected to decline further by 6% to 8%.
- Competition for jobs has intensified, with the number of jobseekers per vacancy rising to 1.68, the highest level since September 2021.
- Despite challenges, average advertised salaries increased by 0.96% monthly, suggesting a shift in hiring for higher-level positions.
The UK’s job market declined markedly in December, with vacancies dropping by -6.95% to 929,138, reflecting a continuing contraction in business confidence. This represents two consecutive months below one million available jobs, as reported by Adzuna.
Further predictions for January indicate a persistent decline, with job vacancies likely to reduce by an additional 6% to 8%. Such a downturn aligns with figures last seen during the pandemic’s peak in June 2020, when vacancies plummeted by -18.14%.
The current job market presents increased competition, with the figure of 1.68 jobseekers per vacancy representing the most competitive environment since September 2021. This situation stands in stark contrast to the previous low of 1.45 in mid-2023.
On the positive side, average advertised salaries grew by 0.96% monthly to £37,577. This increase, along with the year’s 2.28% rise, points to a potential scarcity of junior positions, as companies focus on recruiting for senior roles.
Diverse industry impacts reveal teaching as one of the few sectors seeing an increase in job listings, up by 4.39% compared to November. Conversely, significant declines occurred in Retail, Manufacturing, Hospitality & Catering, and Trade & Construction.
The demand for certain positions has led to extended timeframes to fill openings, especially in Graduate roles, which take an average of 47.2 days to be filled. Such delays underscore the high competition for fewer positions in these areas.
In terms of salary adjustments, Creative & Design and Retail jobs saw increases, while IT and Maintenance recorded declines. Interestingly, Social Work, Travel, and Energy sectors experienced substantial salary growth compared to the prior year.
The East Midlands stood out in regional salary growth, boasting a 7.14% annual increase. Despite this, Northern Ireland’s growth slowed significantly, with a mere 2.81% rise, a notable drop from past trends.
Cambridge continues leading as the least competitive city for job seekers, with the lowest jobseeker-to-vacancy ratio, contrasting with Bradford, which remains the most competitive city.
Warehouse positions remain in high demand according to Adzuna’s Intelligence Portal, indicating strong interest in these roles across the UK market.
Comments from industry figures, such as Andrew Hunter and Tony Wilson, highlight concerns about the ongoing hiring slowdown and economic uncertainty, pointing to a challenging start for the year’s labor market.
The UK job market is facing a daunting start to 2024, with vacancy declines, rising competition, and shifts in salary, reflecting broader economic uncertainties.
