UK Advertised Salaries Hit £32,000 as Job Market Strengthens

The UK labour market is showing signs of strengthening as advertised salaries have hit a UK average of over £32,000 in June, according to jobs site Adzuna.co.uk.

The site's latest UK Job Market Report revealed that advertised salaries grew by 1.7% in June, up from a 0.6% hike in May.

The surge means average salary growth doubled in June, suggesting the labour market recovery is picking up speed.

It was the third consecutive month in which advertised salaries have risen.

"An almost three-fold increase in wage growth compared to May is encouraging, but there is no room for complacency," said Andrew Hunter, co-founder of Adzuna.

"Even with the recent advertised salary growth factored in, real wages have fallen by more than a thousand pounds in the last year.

"Until wages finally leapfrog inflation, many will continue to feel the economic pinch."

The study also found that 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.

The research also revealed that 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.

But despite the monthly salary uptick, real wages are yet to reflect an increase.

Consumer Price Index 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 ($1,791, €1,332) over the last year.

London

Adzuna said a recovering London labour market has helped bolster monthly salary growth.

In June, London average salaries rose by 1.5% to £40,446, closing the gap on the CPI rate, which stood at 1.9%.

Average salaries in the capital have risen 2.9% since the beginning of the year, according to the data.

The biggest improver in average salary growth in London was seen in the energy, oil and gas sector, now with an average pay packet of £53,591.