Staff Reporter
British companies are advertising fewer job openings while simultaneously offering higher salaries, according to new data from job search platform Adzuna.
January saw the lowest number of job vacancies in four years, presenting a challenge for the Bank of England.
Adzuna reported that job vacancies dropped by 4.5% compared to January of last year, totaling just under 828,500. This marks the lowest job count for January since 2021.
Despite this decline in openings, the average advertised salary surged by 7.0% year-over-year, continuing a robust trend of salary increases.
“This trend highlights the growing competition for talent in critical sectors, even as overall hiring activity slows,” said Andrew Hunter, co-founder of Adzuna.
The latest data reveals that the largest wage increases are being offered in the maintenance, manufacturing, and retail sectors.
As the Bank of England (BoE) forecasts a slowdown in the labor market for 2025, there is hope that this could ease inflationary pressures in the economy. Such a shift may allow the central bank to continue reducing interest rates to support an economy that is struggling to grow.
Recent official data showed that the labor market performed better than anticipated in the final quarter of 2024, with wages rising by 6%. However, the number of job vacancies reached its lowest point for January since 2021, standing at 759,000.
Additionally, a survey of purchasing managers indicated that private-sector employers are beginning to reduce their workforce in February.
