26 Nov UK salaries rise at fastest rate in three years as Christmas hiring boosts job market
Annual salaries in the UK have increased at the fastest pace since 2021, driven by a surge in Christmas hiring that is revitalising the job market.
According to job search engine Adzuna, the average advertised salary stood at £39,234 in October, marking a 6% increase compared to the same month last year. This is the highest annual rise since April 2021.
While salaries are on the rise, competition for jobs has intensified. Adzuna reported 861,000 vacancies at the end of October, a slight decrease of 0.17% from September. This shift means there are now 2.08 jobseekers per vacancy, the highest ratio since June 2021, indicating a more competitive landscape for those seeking employment.
Andrew Hunter, co-founder of Adzuna, commented: “While 2024 had a challenging start, the second half of the year has shown signs of recovery and resilience. 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 extended to 39.5 days, reflecting a tougher environment for jobseekers as roles remain open longer due to increased applicant numbers.
British businesses are now grappling with rising salary expectations alongside increased national insurance contributions. Last month, the Labour Party announced that the rate of employer National Insurance Contributions (NICs) will increase by 1.2 percentage points to 15% from April. Additionally, the earnings threshold at which employers start paying contributions will decrease from £9,100 to £5,000.
These changes are expected to hit the retail industry particularly hard, as supermarkets, pubs, and restaurant chains typically employ large numbers of lower-paid workers.
Despite these challenges, certain sectors are experiencing growth due to seasonal demand. Adzuna noted a significant rise in advertised vacancies in the trade and construction industry in October, with new postings up by 8.6%. The retail sector saw vacancies grow by 6%, while hospitality and catering, as well as travel, each experienced a 1% increase in job postings.
Conversely, the sales sector faced a 9.8% decline in job postings last month. However, when compared to six months ago, job adverts for sales roles were up by 6.5%. The IT sector saw a 9.6% decrease in vacancies, and the energy, oil, and gas industries experienced an 8.4% drop.
A separate report by PwC highlighted a surge in “green” job adverts—positions focused on environmentally friendly products, services, or sustainable practices. Overall, there has been a 9% increase in green job postings over the past year.
In London, green job adverts grew by 30% to reach 58,500 positions. Scotland boasts the highest proportion of green job adverts, with 5.6% of all vacancies—equating to 28,700 positions—falling into this category.
Carl Sizer of PwC noted: “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.”
Meta Description: UK salaries rise at fastest rate in three years amid Christmas hiring surge. Discover how seasonal demand and rising wages are impacting the job market, with sectors like retail and construction ramping up recruitment efforts.