The more competitive job market is causing companies to spend extravagant amounts on office Christmas parties. In the UK, businesses are set to blow a total of £1bn (€1.4bn, $1.5bn) on holiday socials with co-workers this season.

Research by Eventbrite has also shown that only 7% of businesses are hosting the party in the office rather than booking a restaurant or venue. "In a competitive job market, a party in the office, bopping around the photocopier no longer impresses," the company stated.

Average spend has increased as well. In 2015, companies across the UK are expected to spend £42.48 per employee, while London firms are spending £56.49 for each worker. In the capital, one in 10 businesses are set to blow £100 per head on Christmas festivities this year.

"Businesses are back in the party spirit and expectations are rising fast, as companies look set to lay on more exciting and experiential parties for staff this year," Eventbrite UK head of marketing Marino Fresch said. "Over half of businesses are aiming to boost staff morale by throwing a party that will get people talking and tweeting for months afterwards.

"With a party in the office feeling lacklustre, we're seeing an increasing number of shared Christmas parties on Eventbrite trying to fill this gap in the market by offering a more exciting, yet cost-effective alternative."

Competitive job market

Companies are increasing the amount of money they spend to celebrate Christmas with colleagues as firms are increasingly desperate for new employees to hire. According to job website Adzuna, there are now two jobs available for every jobseeker.

With the holidays coming up, there was an increase of 4.3% in positions available in October compared to September. Although the vacancies increased by the fastest rate since June 2013, overall salaries have fallen for three months straight.