By Daniel Hunter
Businesses in the UK are shifting their focus to retaining staff rather than looking to hire new ones, according to jobs markets Adzuna.co.uk, as the average advertised salary fell to a year-low.
The average salary for advertised job vacancies fell to £33,305 in June, down 0.6% from June and 1.1% from July last year. It also marks the first time that advertised salaries have fallen annually since June 2014.
Adzuna said the fall in salaries signals a change of focus for Britain's employers.
“Companies are clinging on to the skilled workers they already have, rather than bringing in new talent at the top," said Andrew Hunter, co-founder of Adzuna.
They are rewarding those loyal employees that stood by their side during the recession, but who hadn’t seen salaries rise since these lean years. Now, these employees are receiving their recession rewards, as workloads sprawl and middle managers become ever more important."
Adzuna's study also found that competition for jobs is its lowest since it started the UK Job Market Report. There are now just 0.64 jobseekers per position, down from 0.67 in June and 1.14 in July 2014, suggesting it is twice as easy to find a job now than it was last year.
There are more positions available too. July saw 1,128,112 job vacancies in the UK, up 3.3% from 1,092,030 in June, and 29.3% higher than the 872,629 vacancies in July 2014, driven by an increase in the number of entry-level roles left unfilled due to the meagre salaries on offer.
Andrew Hunter added: "Companies are returning to the classic pyramid structure, by nurturing their middle layer. They are relying more on managers to vet and oversee their junior staff, as more business comes through the door. But by boosting the salaries of their existing staff, employers have less money in the bank for recruitment. This means the jobs market focus has shifted from recruitment to retention."