By Daniel Hunter
Wages may have fallen by 0.2% according to the Office for National Statistisc (ONS), new research suggests that salaries in job adverts grew annually in July for the first time since the start of the recession.
On a yearly basis, salaries increased for the first time since the recession, with advertised salaries up 0.9% compared to July 2013, according to the latest UK Job Market report from Adzuna.
There was also a 2.9% increase month-on-month in July, the fourth consecutive month in which wages have grown.
Total advertised vacancies grew by more than a quarter (27.2%) year-on-year in July, suggesting there is no immediate end in sight for the UK’s jobs upsurge. Advertised vacancies in July stood at 872,629, up 3.9% month-on-month from 839,950 in June. Manufacturing helped drive this month’s job surge as advertised vacancies in the industry doubled year-on-year in July to 15,912.
Businesses are now willing to pay more to attract skills with average salaries reaching £33,877 as jobseekers per role reached a record low in July, with 1.14 jobseekers applying per role, down from 1.21 in June.
Andrew Hunter, co-founder of Adzuna, said: “Despite a constant stream of negativity towards UK wages, there is genuine cause for optimism. Advertised salaries have grown annually for the first time since the recession, a sign that people may at last begin to feel the economic recovery in their pockets.
"The UK job creation boom has become a double edged sword, creating record highs in employment rates at the expense of stagnating wages. For once we can see good levels in both job creation and wage increases. And as the UK motors on towards full employment, we may well see wages increase at a higher rate as employers begin a bidding war for skills.”
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