Christmas hiring is revitalising Britain’s job market, with annual salaries increasing at the fastest rate in three years, according to recent figures.
The average advertised salary reached £39,234 last month, marking a 6% rise compared to the same period last year and the highest increase since April 2021.
Despite the salary growth, competition for jobs is intensifying. Data from job search engine Adzuna shows that there were 861,000 vacancies in the UK’s labour market at the end of October, a slight 0.17% decrease from September. The number of job seekers per vacancy has risen to 2.08, the highest level since June 2021, indicating a tougher environment for those seeking employment.
Andrew Hunter, co-founder of Adzuna, noted that while 2024 began with challenges, the latter half of the year is showing signs of “recovery and resilience.” He stated, “This October, we saw the first positive six-month change in vacancy numbers. Driven by preparations for the busy Christmas shopping season, sectors like trade and construction and retail are ramping up hiring.”
The average duration of job postings on Adzuna has increased to 39.5 days, reflecting the heightened competition among job seekers.
UK businesses are facing the dual pressures of rising salary expectations and increased National Insurance contributions. Last month, Labour announced that the rate of employer National Insurance Contributions (NICs) would rise by 1.2 percentage points to 15% from April, and the earnings threshold at which employers start paying contributions will decrease from £9,100 to £5,000. This change is expected to particularly affect the retail industry, where supermarkets, pubs, and restaurant chains employ large numbers of lower-paid workers.
Christmas hiring has led to a significant uptick in advertised vacancies in certain sectors. The trade and construction industry saw new postings rise by 8.6% in October, according to Adzuna. Retail vacancies grew by 6%, while hospitality and catering, as well as travel, each experienced a 1% increase.
Conversely, some sectors faced declines. Sales job postings fell by 9.8% last month, although they remain 6.5% higher compared to six months ago. IT job adverts decreased by 9.6%, and vacancies in energy, oil, and gas dropped by 8.4%.
Surge in Green Job Opportunities
A separate report by PwC highlighted a surge in “green” job adverts—positions that contribute to environmentally friendly products, services, or processes. Overall, there has been a 9% increase in green job adverts over the past year. In London, such adverts grew by 30% to 58,500, while Scotland boasts the highest proportion of green job vacancies at 5.6%, equating to 28,700 positions.
Carl Sizer of PwC commented on the trend: “The surge in green job openings, while the wider job market contracts, underscores the increasing demand for green skills. While this demand is a great signal of intent and opportunity as the UK transitions to net zero, it’s also a sign that green skills are in short supply. Given the government’s new increased targets to deliver clean power by 2030, the skills challenge is only going to increase.”
