London salaries begin dropping as job vacancies finally start to fall
Job vacancies in November fell below one million for the first time since May 2021 while London remains the only region seeing year-on-year drops in advertised salaries, according to job search engine Adzuna, as the UK’s labour market cools.
Data from the firm’s job market report showed advertised vacancies fell 2.7 per cent between October and November to 998,562. This figure is down 8.6 per cent from the same time last year.
The numbers add to signs of a stalling in the UK’s labour market. Government figures last week showed wage growth slowed more than expected in the three months to October while vacancies dropped.
Adzuna’s advertised vacancies grew consistently during the first half of 2023 – reaching their highest levels since 2021 in June – but have become more turbulent in the second half of the year.
The UK’s hiring slowdown is also affecting university graduates. Although available graduate roles have increased from their lowest availability of the year in September, they are still down 26.9 per cent on last year at 35,504.
Meanwhile, advertised salaries have ticked up for the first time since June.
Average salaries came in at £37,221 in November, rising 0.7 per cent from October and 1.8 per cent year-on-year.
However, London is the only region in the UK seeing annual declines in advertised salaries, falling two per cent to £42,928 in November.
Wales experienced a fall in October but has since ticked up 0.03 per cent.
The East Midlands saw the highest year-on-year growth in November, rising 6.6 per cent to £33,976.
“The UK jobs market has gone through a turbulent year in 2023,” said Andrew Hunter, co-founder of Adzuna.
“Competition is growing across sectors, making it harder for UK job hunters to find the right roles for them, particularly as sectors tighten their belts.
“Salaries appear to be rising again yet with one of the worst years on record for salary transparency, it’s still difficult for potential recruits to understand compensation for the roles they’re applying for. As we head into 2024, finding a job will likely stay tough for the first part of the year.”
Social work was the sector with the biggest annual increase in advertised salaries at 11 per cent to £33,767, while salaries in HR and recruitment fell 6.6 per cent to £38,122.
Legal and IT are the best-paid sectors, with salaries of £54,633 and £51,284 respectively – although IT salaries have plunged 8.8 per cent year-on-year.
Teaching was the largest recruiting sector of 2023, while warehouse work was the most searched for job this year.