Member Article

North East salary growth stagnates in last quarter

The North East is the second worst paying region of the UK, according to a new study by jobs search engine Adzuna.

The study found advertised salaries in the region have stagnated over the previous 6 months, remaining at just over £27,000. It also found Sunderland to be the fourth worst place in the UK to find a job, with 38 applicants per vacancy.

Despite this gloom south of the Tyne, average salaries in Newcastle increased over the same period by 1%, mirroring the national trend.

The Adzuna Jobs Index also revealed an increase of 1.8% in jobseekers per vacancy over 6 months, and in struggling parts of Northern England the number of jobseekers per vacancy has risen to above 50.

UK Vacancies are growing steadily however, up 0.2% over 6 months to 460,977 live vacancies, proving the labour market is more resilient than expected as GDP returns to growth in the first quarter of 2013.

April’s vacancy stock has risen in tandem with the number of Jobseeker’s Allowance claimants reported by the Office of National Statistics over the past 6 months. This increase suggests a decrease in employer confidence to take on new staff in times of economic uncertainty.

Flora Lowther, Head of Research at Adzuna says “The number of advertised jobs has increased steadily from Q1 to Q2. While this is encouraging, long term unemployment remains a major problem. Cities such as Hull and Chester remain in trouble with job stock dwindling and average wages falling. One of the few bright spots in this month’s figures is that youth unemployment has fallen by 0.1%. However, Adzuna data reveals that there are still 20 applicants for every entry level vacancy, so it’s still fiercely competitive for 18 to 24 year olds.”

The IT sector continues to boom with a number of technology salaries rising 6% over the last 6 months. Mobile “app” developers and Web Designers have seen the biggest improvement in wages employers are willing to pay in 2013. The Energy Oil & Gas industry is the top paying sector this month, with average wages sitting at £48,405. Demand for legal and manufacturing professionals has dropped this month as average advertised salaries shrink by up to £4,000 since October 2012.

The total earning potential of all open vacancies in the UK stands at £15.77bn – an amount greater than the GDP of Cyprus.

This was posted in Bdaily's Members' News section by Graham Vincent .