Although the economic recovery has seen an increase in employment, there have been concerns that wage growth is not yet catching up with rising inflation. However, reports in July suggest that advertised salaries have risen for the first time on a year-on-year basis. There has also been an increase in the average graduate salary, alongside hundreds of thousands extra jobs.
A rise in advertised salaries is always good news, but it may leave people living throughout the UK wondering where the jobs are exactly. As usual, London has seen the sharpest growth, while areas like South Wales and the North East of England have continued to battle against high unemployment rates.
Geography aside, the independent market analyst Adzuna has stated that advertised job salaries have risen by 0.9% since July 2013. While this doesn’t yet catch up with rising rates of inflation, it is a slightly more promising increase against the average wage rise of 0.6% across the UK as a whole.
In addition to rising advertised salaries, the number of jobs advertised has increased by more than a quarter when compared with July 2013. An increase of 27.2% has been enjoyed overall, which indicates that there is no end in sight for the UK’s economic recovery. One of the key industries driving this job surge is manufacturing, where more than 15,000 new positions have been advertised.
It appears that businesses are now willing to pay their employees more too. The average wage in the UK is now £33,877, and the number of applicants per role has slipped from 1.21 to 1.14.
One of the biggest catch-ups made in the North of England has come from the car manufacturing industry. Average wages in the north have risen to just above £27,000, with a 21.3% increase in output seen in key locations like Sunderland and Coventry.
Other areas seeing impressive recoveries include:
One of the more surprising areas to see growth came from graduate salaries, which are becoming more competitive to attract larger talent pools. With less students attending university during 2012 and 2013 due to tuition fee rises, employers are now pulling out all the stops to attract the right people.
Although a significant proportion of employment opportunities have come from London and the South East, London was the only area in the UK to not see a rise in salaries during July 2014. This indicates that the playing field is leveling out slightly across the country, although high unemployment figures do still prevail in areas outside the South East of England. Should advertised jobs and salaries continue to rise as they are, this will become less of a problem. For now, there is just one remaining quarter to see out in 2014 before the UK can assess the year’s growth fully.