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London feels brunt as advertised salaries fall

London saw the largest fall in annual advertised salary as advertised pay falls in every region for the first time in three and a half years

According to the latest UK Job Market Report from Adzuna.co.uk, the average advertised salary in London lies at £40,063 - down 5.3% on this time last year.

While overall wage growth is improving – as those in work receive long overdue pay rises – advertised salaries are moving backwards. August saw the average advertised UK salary fall to £33,318, down 0.6% on July and down 3.3% compared to £34,417 in August 2014.

This was accompanied by spectacular levels of cross-regional decline. For the first time since January 2012, all areas of the UK saw advertised salaries fall on an annual basis.

Table 1. Advertised salaries by region

Several sectors have shown resilience against the widespread salary slippage, in particular the HR sector. The average advertised pay in a Human Resources job is now £30,767, up 3.3% from £29,752 in August 2014, showing a clear rise in the valuation of HR departments within companies.

Andrew Hunter, co-founder of Adzuna, commented: “Businesses are beginning to value a good HR department more than they have in the past, as they respond to the talent shortage with new tactics. It’s getting harder to source skilled workers in the UK for industries such as trade and construction and IT, even though there are many vacancies on offer.

“An easier option than hoping new workers are the right fit, is for companies to invest in HR, ensuring happy employees and first access to fresh talent as it appears in the market. This attitude shift towards building up HR departments shows a new focus on targeted recruitment and retention, helping employers to bypass the war for top talent.”

This was posted in Bdaily's Members' News section by Ellen Forster .