Salaries rise in a bid to maintain a resilient job market

Despite ongoing economic uncertainty, recent data from CV-Library suggests that business confidence is remaining strong across the UK, as salaries rose by 3.2% in October 2016, when comparing month-on-month data. This increase may be a result of the continued efforts of businesses to drive up salaries, in a bid to attract the best talent.

Whilst this hike in salaries may be good news for job hunters, it could be a reaction to a fall in candidate appetite, as applications rates were down 2.1% when compared to September 2016. This is concerning news for businesses across the nation who could face a potential backlash when working with a smaller talent pool.

Skills shortages could also be pushing up salaries across the nation, as businesses work hard to maintain the resilient job market that has withstood uncertain times. However, the fact that application figures have dropped suggests more needs to be done to attract job hunters; investments in wages are a good way to attract workers into a company, but clearly should not be the only means used to recruit the very best candidates.

There were several key cities and sectors that saw salary growth in October, the top five cities include:

1. Cardiff – 14.6%
2. Edinburgh – 7.6%
3. Liverpool – 7%
4. Portsmouth – 6.4%
5. Hull – 4.6%

The top five sectors include:

1. Construction – 24.8%
2. Hospitality – 23.6%
3. Leisure/Tourism – 9.8%
4. Military/Emergency – 6.7%
5. Education – 6.1%

According to the data, job vacancies were also up in October, with the nation experiencing a 4.8% increase in job vacancies, when compared to October 2015.  This suggests that despite uncertainty, organisations across the UK are continuing to invest in their workforce. The five cities that saw the biggest growth in jobs were:

1. Southampton – 11.9%
2. Manchester 11%
3. Edinburgh – 10.8%
4. Birmingham – 7.9%
5. London – 6.8%

Whereas the key sectors to experience growth were:

1. Distribution – 53.6%
2. Catering – 29.9%
3. Charity – 29.3%
4. Manufacturing – 27.6%
5. Automotive – 20.7%

In the face of the UK’s current economic woes, the fact that advertised salaries have increased is testament to the determination of businesses across the UK to keep the economy moving forward. We’re nearing the end of a turbulent year, and there is still a great amount of ambiguity around the status of the labour market. But, with the Chancellor’s first Autumn Statement to be made in a few weeks’ time, it is hoped that this will be a chance to boost business, and consumer confidence, as we continue to navigate through EU negotiations.

Source: CV Library- 3rd November 2016