Job vacancies in the United Kingdom have dropped at a steeper rate than in similar countries, according to data from recruitment platform Indeed. As of late November, UK job postings were 23% lower than a year earlier, a sharper decrease than the 14% drop reflected in official figures for August to October. This represents a 12% decline in vacancies compared to pre-pandemic levels, signaling a slowdown in the British economy in the latter half of 2024.
Indeed economist Jack Kennedy noted that the labor market has shifted in favor of employers, citing falling job postings, reduced signing bonuses, slower wage growth, and an increase in zero-hours contract listings. While France showed a comparable annual decline of 22%, other countries like the US, Germany, and Australia saw smaller drops ranging from 5% to 15%.
The data also indicates businesses' growing caution, which has intensified since the announcement of a £25 billion payroll tax hike in the October budget. Indeed anticipates continued caution from employers, extending into 2025.
Despite a weakened labor market, advertised starting salaries in the UK rose 6.7% over the past year, outpacing the 4.8% growth in official average earnings data. Pay growth was most pronounced in low-paid roles, where wages increased by 7.6%, influenced by a higher minimum wage, compared to a 6.0% rise in high-wage positions. However, zero-hours contracts - offering no guaranteed hours - rose to 1.9% of job postings, up from 1.1% in April 2022, impacting job security for low earners.