Job vacancies in the United Kingdom have decreased faster than in other comparable countries, indicating a significant shift in the nation’s labor market.
According to recruitment platform Indeed, the UK has seen a 23% drop in job postings as of November 29, 2024, compared to the previous year, signaling an ongoing economic slowdown.
Indeed’s data reveals a concerning decline in job vacancies in the UK, with a 23% reduction in advertised positions as of November 29, 2024, compared to the same time the previous year.
This is a more significant drop than the 14% decline recorded in official government data covering the August to October period. Additionally, job vacancies are currently 12% lower than before the COVID-19 pandemic.
Employers hold the power
According to Jack Kennedy, an economist at Indeed as the labor market softens, employers are increasingly gaining the upper hand.
“The balance of power has certainly swung towards employers as the labour market has softened, as evidenced by the fall in job postings, decline in signing bonuses, easing wage growth and rising zero hours contract postings,” he noted.
The UK’s job vacancy decline of 23% stands out when compared to other countries. France saw a slightly smaller drop at 22%, while other nations, including the United States, Germany, Ireland, Canada, and Australia, experienced more modest reductions in the 5% to 15% range.
Indeed’s findings also show that concerns about hiring in the UK have intensified following the announcement of a £25 billion rise in employer payroll taxes in the October 30 budget by finance minister Rachel Reeves.
“Employers will likely continue with caution when it comes to hiring in 2025,” Indeed predicts.
More insights
Despite the drop in job vacancies, starting salaries have risen in the UK. Advertised salaries were 6.7% higher in November compared to the previous year, outpacing the 4.8% growth in average earnings, excluding bonuses, reported by official data for the third quarter.
This high wage growth has been a contributing factor to the Bank of England’s decision to slow down interest rate cuts.
Indeed’s report also highlights that pay growth has been fastest in lower-paid positions. Salaries in low-wage roles increased by 7.6% year on year in October, driven in part by a higher minimum wage. In contrast, high-wage jobs saw a more modest increase of 6.0%.
In a concerning trend for low-income workers, zero-hours contracts—positions offering no guaranteed hours—have increased to 1.9% of job postings, up from 1.1% in April 2022. This rise comes despite government pledges to curb such contracts, raising concerns over job security for vulnerable workers.
