Average Salary Growth Doubles In June

Survey suggests it's been driven by recovery in the UK capital and a growing graduate market.

Average salary growth doubled in June, suggesting the labour market recovery is picking up speed, according to the latest UK Job Market Report from Adzuna.co.uk.
 
Advertised salaries rose to £32,933 in June 2014, growing 1.7% between May and June, more than double the rate of growth witnessed between April and May (0.6%). It was the third consecutive month in which advertised salaries have risen.

The average salary in Scotland has reached £32, 304. That's a rise of 0.7% and almost £4, 000 more than what people in north east England and Wales are earning. A jobs survey indicates that average salary growth doubled in June.
 
The volume of available vacancies is also rising. There were 839,950 advertised positions in June, 22.3% more than twelve months ago, when 687,039 positions were available. On a monthly basis, vacancies increased 2.6%, helping to drive the unemployment rate down to 6.5%, its lowest level in six years.
 
And in a final sign of economic good news, the ratio of jobseekers to vacancies fell to a post-recession low. There were 1.21 jobseekers for every advertised vacancy in June 2014, compared to 2.10 twelve months ago. It was the lowest ratio of jobseekers to vacancies since May 2008.
 
Andrew Hunter, co-founder of Adzuna, explains: 

"Greater economic certainty is finally filtering through into a pick-up in salaries. Employers are boosting wages as top talent becomes harder to source, hoping that by supplementing salaries they will attract the best staff. At the same time, the pace of job creation is pulling ahead of the number of workers looking to change jobs. Competition for jobs is falling as a result. The post-recession era of tough rivalry between job hunters is drawing to a close, as the power switches into the hands of those looking to move, rather than those looking to hire."
 
Despite the monthly salary uptick, real wages are yet to reflect an increase. Inflation rose to 1.9% in June, but wages are still some way off showing year-on-year growth. Average salaries fell 1.2% year-on-year in June, equivalent to a drop of £1,054 over the last twelve months.
 
Andrew Hunter, co-founder of Adzuna, explains:

"An almost three-fold increase in wage growth compared to May is encouraging, but there is no room for complacency. Even with the recent advertised salary growth factored in, real wages have fallen by over a thousand pounds in the last year. Until wages finally leapfrog inflation, many will continue to feel the economic pinch."