The latest UK job market report from job search engine Adzuna has revealed that in December 2023, the UK faced its most substantial monthly vacancy decline in nearly three years.
The number of advertised vacancies experienced a notable drop of -6.95% to 929,138, marking the second consecutive month with total vacancies below the 1 million mark.
Indicators suggest that early 2024 has presented similar challenges, with expected vacancy reductions ranging between -6% and -8%. The last instance of such a significant decline occurred in June 2020, as businesses grappled with the impacts of the pandemic, where there was a monthly drop of -18.14%.
This decline has intensified competition in the job market, which has reached its highest point since September 2021 with 1.68 jobseekers per vacancy. This contrasts with the lower figures observed in May and June 2023, when it reached its lowest point at 1.45.
Furthermore, an increasing number of job adverts (50.2%) are omitting salary data, making it more difficult for potential candidates to assess role seniority and relevance.
Advertised monthly salaries have increased by +0.96% to £37,577, and on an annual basis, the rise amounted to +2.28%. This upward trend may indicate a scarcity of entry-level or junior positions, with a focus on hiring for more senior roles.
Get in touch to discuss your staff expenses.