The number of jobseekers per advertised job vacancy has reached a record post-recession low of 0.89, researchers claim.
According to the latest UK Job Market report from Adzuna – a search engine for job advertisements – the number of advertised job vacancies reached 949,778 in November 2014, the largest number of jobs since the recession and up 23.6% on November 2013.
Adzuna say there has been ten consecutive months in which competition for jobs has fallen and there are now more advertised vacancies than jobseekers.
Andrew Hunter, co-founder of Adzuna, said:
“The job market has seen significant revival over the past year. The most recent figures provide a solid base for optimism as we head into 2015.”
However, Mr Hunter urged caution, saying temporary jobs for the Christmas period may be partly responsible for a 1.4% increase in advertised vacancies between October to November 2014:
“This peak in advertised vacancies at the close of the year may owe as much to seasonal work as it does to the resurgent core of the jobs market”, he said.
He added: “Some uptick in advertised vacancies during the lead-up to the festive period was expected.”
Mr Hunter said the “cost of living crisis” was starting to ease, “leaving more people with more money in the New Year – injecting a feel-good factor into a traditionally glum time of year.”
This claim will be impossible to accept for the several thousands of jobseekers still struggling to find work and who may have been made redundant during the biggest recession in decades.
And the supposed economic recovery is yet to be felt by families struggling to pay bills, or forced to turn to food banks to feed themselves and their children.
There are also wide variations in the number of available jobs in different towns and cities across the UK. For example, there were 23.54 jobseeker’s for every job vacancy in Salford and 18.54 in the Wirral. This compares to just 0.17 in Cambridge and 0.20 in Guildford.
Research published by the TUC earlier this month (December) reveals that just one in every forty new jobs added to the economy between 2008 and 2014 has been a full-time employee job.
TUC General Secretary Frances O’Grady said:
“While more people are in work there are still far too few full-time employee jobs for everyone who wants one.
“It means many working families are on substantially lower incomes as they can only find reduced hours jobs or low-paid self-employment.”
“The Chancellor has said he wants full employment, but that should mean full-time jobs for everyone who wants them. At the moment the economy is still not creating enough full-time employee jobs to meet demand.”
Analysis also shows a significant rise in the number of people trapped on controversial low-paid and insecure Zero Hours contracts. TUC says most workers on zero-hours contracts earn less than the living wage.
According to Adzuna, average advertised salaries grew to £34,549 in November 2014 – a 5.8% increase compared to £32,651 a year ago.
The Consumer Price Index (CPI) – one measure used to calculate the cost of living – grew by just 1% in the year to November 2014. According to the research, this means that average annual salary increases continue to outpace CPI inflation and shows real wage growth.
Consumer service jobs saw the largest annual increase in average advertised salaries of 16.5% over the year to November to reach £21,353, say Adzuna.
Andrew Hunter said:
“The customer services sector has evolved in response to the changing landscape of business engagement.
Adding: “This increase in their average salary reflects companies’ desire to attract the best talent for this crucial sector.”
Average advertised salaries for jobs in Hospitality & Catering took the largest annual plunge to £24,148, which represents a decrease of 2.11% since November last year.
Andrew Hunter said:
“A decrease in average advertised salaries at the close of the year for Hospitality & Catering might seem counter-intuitive, but it’s actually a regular seasonal occurrence.
“Many businesses take on extra seasonal staff for low-wage work in order to cope with the extra footfall during this time of year.”
Manufacturing jobs experienced a yearly salary increase to £30,678 in November, representing a 14.5% yearly increase. This increase was followed closely by a 10.4% annual salary boost in Trade & Construction, with an average advertised salary of £38,704.
Mr Hunter said companies in these sectors “are not simply offering higher salaries because they’re feeling flush with cash”, but because “they’re struggling to attract the talent they need to expand”.
“They need to fill the existing skills gap before we can expect other sectors to feel the benefits”, said Mr Hunter.
Scotland is the only region of the UK to experience a year-on-year salary decrease. With average advertised salaries growing by just 0.53% over 2014 it leaves Scotland trailing behind the rest of the UK. According to the research, this was caused by the ‘instability resulting from the referendum’.
At the same time, North East England (11.60%), Yorkshire and The Humber (10.76%) and North West England (8.78%) have jostled Wales (8.44%) out of the pole position it had been enjoying thanks to the Jobs Growth Wales initiative.
Average Northern salaries remain lower than in the South, but at the current rates of change this may not remain the case for long – expect the North to surge forward in 2015, say Adzuna.
Andrew Hunter said:
“A manufacturing boom has buoyed the Northern jobs market this year. The traditional home of manufacturing in the UK is seeing a new demand for highly-skilled labour, which is reflected in healthy annual wage growth.
> Really ? All I see in my local job searches are cleaning jobs at 16 hours/week or less, or zero hours hospitality-type jobs. Jobs at 30+ hours a week seem to be very rare.
“There is a more complicated picture for Scotland, another region where average salaries are tightly tied to a dominant job sector – waning salaries in Energy, Oil and Gas have been compounded across the region by recent political instability.
“However, advertised salaries still managed to grow on average in 2014. The margin of growth was undeniably lower than the increases enjoyed by the rest of the UK.
“Nevertheless, average growth despite the unique setbacks faced by the Scottish jobs market speaks volumes of the market’s resilience – there is every reason to hope Scottish salaries and employment will bounce back into the coming year.”
Source – Welfare Weekly, 31 Dec 2014
Old Tory policies die hard – or perhaps they (like Labour, LibDems, UKIP, etc) just dont have the depth of imagination to think up new innovative ones.
Whatever, another Thatcherite policy rears its ugly head again. All the way from the days when they seriously considered cutting cities like Liverpoool adrift to die, comes a reprise of Norman Tebbit’s “on yer bike” advice.
An article in The Economist titled Some towns cannot be preserved. Save their inhabitants instead informs us that –
“Middlesbrough, Burnley, Hartlepool, Hull and many others were in trouble even before the financial crisis. These days their unemployment rates are roughly double the national average, and talented young people are draining away. Their high streets are thick with betting shops and payday lenders, if they are not empty.
“Under the last Labour government these towns were propped up on piles of public money. Some built museums and arts centres in an attempt to draw tourists, though this rarely worked. All became dependent on welfare.
“But there is little money for grand projects these days. And cuts to welfare, enacted by the Conservative-led coalition government in an attempt to balance the books, are falling brutally there. In Hartlepool the cuts amount to £712 for every working-age person. In Guildford, a middle-class commuter town south of London, they add up to just £263.”
So, nothing we didn’t already know. Can you guess what the remedy is going to be ?
“Governments should not try to rescue failing towns. Instead, they should support the people who live in them.
That means helping them to commute or move to places where there are jobs—and giving them the skills to get those jobs.”
Ok, right – so that means we all have to uproot and head for the South East ? And, if/when we manage to scrabble to the top of the heap and win the coveted prize of a minimum wage service industry job, where are we going to live ? Some London boroughs are already enacting what amounts to economic cleansing of the poor when it comes to housing.
Still, perhaps we’ll see the esthablishment of squatter camps outside the city limits, from where those with jobs can be bussed in every day to labour for their pennies.
Actually, the article may have been thinking along similar lines – “…new communities can be created in growing suburbs fringing successful cities. It has happened before.”
It certainly has. But that doesn’t mean it’s a good thing. Finally, I’d like to quote one of the comments published in response to the article, which I think succinctly sums up the problems that the piece’s author evidently failed to forsee –
“The obvious consequence of this article is that you support the people by moving them from “dead” areas to “live” areas like, er, London and the Greater South East. Obviously in leaving a dead area you will get very little for your house (after all it is being effectively abandoned), so you will have to be subsidised in the South – or live on the streets – something I don’t think the locals in London like.
Then of course the problem is London
– The motorways are clogged (despite having more lanes than anywhere else in the country),
– the railways are apparently a hell hole (despite having better rolling stock than the rail-buses we still have where I live and despite getting the Crossrail investment and tube extensions),
– the airports are apparently even worse (despite or possibly because of a hogging of international connections)
– Housing is a nightmare – made worse apparently by immigrants (you wait until the Northerners arrive!)
– Key workers are not available (probably because they cannot afford to live in central London and cannot afford to travel into London)
– There are water shortages (which will probably get worse when the people from Hartlepool, Burnley, Hull Middlesbrough et al arrive)
Actually being unemployed and living on the Durham coast sounds like quite a good life in comparison – and will probably cost the exchequer less than solving all the additional problems London would have if you moved hundreds of thousands, if not millions of people from “dead” areas to London.”
Economist, 12 Oct 2013 http://www.economist.com/news/leaders/21587790-city-sicker