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Staying put in your job could be the best option as advertised salaries slump

Posted by Ramat Tejani

29-Oct-2015 14:20:09

Here's something a little different from one of our Job Board Partners...

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Article by Adzuna

While overall pay growth in the UK is improving – as those in work receive long overdue pay rises – advertised salaries are slipping backwards. August saw the average advertised British salary slide to £33,318, down 0.6% on July and down 3.3% compared to £34,417 in August 2014.

This was accompanied by spectacular levels of decline across all regions. For the first time since January 2012, all areas of the UK saw advertised salaries fall on an annual basis.

The salary slump is a result of several factors, most significant being the recent flood of graduates entering the jobs market at entry level. A boom in lower-paid roles is also dampening average advertised salary numbers.

And while employers are rewarding their current employees with hard-earned pay rises – evident in the most recent ONS data showing strengthening average wages – this means they have less resource left for recruitment, and are unable to increase advertised salaries at the same rate.

Andrew Hunter, co-founder of Adzuna, comments: “As the summer’s heat draws to an end, advertised salaries are also cooling off. The pay packets being offered for new roles are substantially lower than this time last year, and are falling in every region across the UK. This national phenomenon confirms that the jobs market is starting to slow down, with an influx of entry-level and low-paid vacancies reducing average advertised salaries. The skills shortage has not benefited job hunters as might be expected. Counter-intuitively, it’s currently easier to climb the career ladder by staying in your current role and asking for a pay rise than by looking to move into a new position.”

 

Advertised vacancy numbers are increasing, as demand for skilled labour and technical workers continues rising, but many of the vacancies on offer are remaining unfilled. There were 1,150,396 vacancies in the UK this August, up 2% from July’s numbers and 27.1% more than in August 2014 – when 905,297 roles were advertised.

Competition for jobs has fallen to a record post-recession low of 0.62 applicants per advertised role this August, having gradually decreased since March when an average 0.80 jobseekers competed for each position. The number of applicants has nearly halved since August 2014, when on average 1.06 candidates applied for each advertised vacancy. Despite this, the latest ONS figures for May to July 2015 reveal that unemployment of talent in the jobs market.

 

The winners – job sectors by average salary growth

Job Sector

Average Advertised Salary

Salary % 12 Month Change

Travel Jobs

£24,825

+3.6%

HR Jobs

£30,767

+3.1%

Trade and Construction Jobs

£38,159

+2.7%

Scientific & QA Jobs

£38,423

+2.2%

IT Jobs

£46,419

+1.8%

 

Andrew Hunter comments: “Businesses are beginning to value a good HR department more than they have in the past, as they respond to the talent shortage with new tactics. It’s getting harder to source skilled workers in the UK for industries such as trade and construction and IT, even though there are many vacancies on offer. An easier option than hoping new workers are the right fit, is for companies to invest in HR, ensuring happy employees and first access to fresh talent as it appears in the market. This attitude shift towards building up HR departments shows a new focus on targeted recruitment and retention, helping employers to bypass the war for top talent.”

 

The losers – job sectors by average salary growth

Job Sector

Average Advertised Salary

Salary % 12 Month Change

Energy, Oil & Gas Jobs

£40,717

-11.9%

Healthcare & Nursing Jobs

£34,867

-9.3%

Admin Jobs

£22,321

-4.6%

Legal Jobs

£42,438

-4.4%

Sales Jobs

£30,813

-1.9%

 

Healthcare workers and nurses feel the strain

With salaries falling across the country, healthcare workers and nurses have suffered a 9.3% salary drop from August last year to £34,867, a substantially higher loss than most other sectors. Salaries in the sector have decreased despite the considerable lack of resources within the sector, which indicate more staff and particularly nurses are needed, with 127,374 vacancies in the industry.

Andrew Hunter, co-founder of Adzuna, continues: “As healthcare workers face more pressure and longer hours, many may feel they are deserving of salary growth. But advertised salaries in the sector have fallen. This is in part due to a rise in part-time care work needed to look after the elderly of the country. The industry is under considerable pressure. With continual headlines about a lack of resources, it is unlikely the sector will attract the workers it desperately needs if salaries continue to fall. As the NHS experiences a staffing crisis and junior doctors face longer hours for reduced pay, the industry will need to do more to secure the best workers to deliver top quality care. If salaries continue to decline, workers may be tempted into other sectors – or even abroad.”

 

Tech start-ups proving the most popular positions 

Advertised positions in Tech start-ups have attracted the most views this August as vacancies continue to increase, with ‘Songkick’ (21 vacancies), a music and events service, social games company ‘King.com’ (19 vacancies) and ‘YPlan’ (13 vacancies), an event finder and booking service all proving particularly popular.

Andrew Hunter comments: “Tech start-ups continue to appeal to a variety of job hunters, with vacancies increasing as consumer demand for online services grows. The broad range of music, gaming and events services shows that the industry’s potential is phenomenal and employment opportunities in the sector will continue to climb.”

Find out more about Adzuna by visiting their site at https://www.adzuna.co.uk/

 

Topics: job board