Job Vacancies Decline in the UK

By David Milliken
LONDON (Reuters) – Job vacancies in the United Kingdom have decreased more rapidly than in other comparable countries over the past year, according to recruitment platform Indeed.

Indeed's data revealed that as of November 29, there was a 23% reduction in job advertisements in Britain compared to a year ago, which is a sharper decline than the 14% drop reflected in official data covering August to October.

This current situation indicates that job vacancies are 12% lower than levels seen before the COVID-19 pandemic.

Jack Kennedy, an economist at Indeed, noted, "The balance of power has certainly swung towards employers as the labour market has softened…" This is evident in the significant drop in job postings, reduced signing bonuses, slowed wage growth, and an increase in zero-hours contract postings.

While France reported a slight improvement with a 22% annual decline, other countries—including the United States, Germany, Ireland, Canada, and Australia—experience declines ranging from 5% to 15%.

Looking ahead, Indeed predicts a steady fall in vacancies through 2024. Employers are likely to remain cautious about hiring, especially following Finance Minister Rachel Reeves’s announcement of a £25 billion ($32 billion) rise in employer payroll taxes in her October 30 budget.

Furthermore, the Recruitment and Employment Confederation stated that demand for workers in Britain collapsed last month after the new Labour government's budget was released.

Tuesday's figures showed a 6.7% rise in advertised starting salaries compared to the previous year, surpassing the 4.8% growth in average earnings excluding bonuses for the third quarter.

High wage growth has been a significant factor in the Bank of England's slower rate cuts compared to the European Central Bank and the U.S. Federal Reserve. Indeed reported that pay growth was strongest in low-paid roles, which saw a 7.6% increase year on year, partly due to an increased minimum wage, while high-wage jobs experienced a 6.0% rise.

In less favorable news for low-income earners, zero-hours contracts—offering no minimum hours to employees and which the government intends to limit—increased to 1.9% of job postings, up from 1.1% in April 2022.

Indeed, owned by Japan's Recruit Holdings, operates the world's most visited job site, boasting 580 million job seeker profiles across over 60 countries.

($1 = 0.7851 pounds)