Job vacancies remain steady but salaries suffer

Job vacancies remain steady but salaries suffer

According to a new study, job vacancies have stabilised at just under half a million, but salaries have fallen in the UK.

The study, carried out by Adunza.co.uk shows that UK job vacancies in May stabilised at 460,493, down 0.1% from April, but up 1.4% on May 2012. In fact job numbers have increased in every previous month this year.

However, wages were down by an average of £1,500 in real terms since May 2012. Average salary falls to £33,617 p.a., down 0.2% from April, down 1.7% on May 2012.

It seems that lower wages are propping up employment; employers are keeping a lid on wages in order to hire staff on low salary levels.

Great Britain

How the data appears regionally:

Wales and eastern England have seen the steepest drop in average wages at 4% since last November, while London and the South East were the only regions where pay rose.

The data also revealed a significant north-south divide in employment opportunities. All of the top 10 places with the lowest number of jobseekers per vacancy were in the south, while 8 of the 10 hardest places to find a job were in the north.and have seen the steepest drop in average wages at 4% since last November, while London and the South East were the only regions where pay rose.

However, the divide has closed marginally over the past six months. Competition for jobs increased 4% in London, while falling 4% and 3% in Liverpool and Derby respectively.

Flora Lowther, head of research at Adzuna, explains: “Until last month, job numbers had increased every month this year, which is testament to the resilience of the labour market in an environment where economic growth is anaemic. But salaries have paid the price.”

Although its great to see that job vacancies are on the up since last year, it seems that salaries have paid the price. Rather than making redundancies and freezing hiring, employers are keeping a lid on the wages of existing employees and hiring new staff at lower salary levels, which indicates a fall in employer confidence.

Think you should be entitled to a higher salary? Check out our blog post on:

3 Points to Consider When Determining Your Salary

Search For a Job