Salaries rise in a bid to maintain a resilient job market

UK rise in salaries can keep the economy afloat after the Brexit decision, a new study finds.

Business confidence is remaining strong, with UK salaries increasing by 3.2 per cent in October 2016, when comparing data with the previous month, according to the latest data from CV-Library.

Further still, certain cities witnessed above average growth in wages during this period, including: Cardiff (14.6 per cent), Edinburgh (7.6 per cent) and Liverpool (7 per cent).

While the hike in salaries is positive news for job hunters, it could well be in reaction to a fall in candidate appetite, as applications were down 3 per cent when compared to October 2015.

This is concerning for businesses across the UK, with some of the biggest drops being witnessed in key regions, including Wales (-18.3 per cent), Scotland (-12.2 per cent) the East Midlands (-7.8 per cent) and the South East (-6.4 per cent).

Lee Biggins, founder and managing director of CV-Library, thinks the widespread skill shortages are pushing up salaries across the UK, which is good news for job hunters looking for a new role in the next few months.

Biggins says, ‘While businesses are working hard to maintain the resilient job market that has withstood uncertain times, the fact that application figures are down suggests that candidate appetite is taking a major dip. Investments in wages are a good way to attract workers into a company, but clearly should not be the only means used to recruit the very best talent.’

Job vacancies were up by 4.8 per cent during this period (compared with October 2015), with key cities showing standout, above-average growth in Southampton – 11.9 per cent, Manchester – 11 per cent and Edinburgh – 10.8 per cent.

Alongside this, certain sectors witnessed strong job growth, including catering (29.9 per cent), manufacturing (27.6 per cent), automotive (20.7 per cent) and marketing (12.8 per cent), all outpacing the national average for job growth.

Biggins concludes, ‘It’s positive to see that certain industries and cities are outperforming the national average, which is good news for workers in these areas. Business confidence is at a tricky time right now. We’re nearing the end of a turbulent year, and there is still a great amount of ambiguity around the status of the labour market.

‘But, with the Chancellor’s first Autumn Statement to be made in a few weeks’ time, it is hoped that this will be a chance to boost business, and consumer confidence, as we continue to navigate through EU negotiations.’

Further reading on wages

Owen Gough, SmallBusiness UK

Owen Gough

Owen was a reporter for Bonhill Group plc writing across the and titles before moving on to be a Digital Technology reporter for the

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