Wages Increase for the First Time since the Recession
For the first time since the beginning of the financial crisis, advertised salaries grew at a faster rate than inflation in August.
Salaries on offer in August have been found to have increased by 1.9% compared to August 2014 against a CPI inflation rate of 1.5% for the same period.
Not only did the salaries increase within every region in the UK in the year to August 2014; increasing from an average of £33,873 to £34,463, but the number of vacancies has increased too. There was a 30% year on year rise in the number of advertised jobs – with 905,297 jobs on offer. It has been predicted that by the end of 2014 there will be over a million vacancies being advertised.
Meanwhile, competition for jobs has increased to its lowest point since the recession, with the ration of job-seekers to candidates falling from 1:99 to 1:06 in the year to August 2014. If this rate continues into September, there could be more vacancies than job-seekers for the first time since the recession.
This exceptional growth in advertised vacancies highlights extreme positivity in the jobs market as employers turn away from the traditional August slowdown in favour of continued expansion. It also benefits salaries as previously the influx of jobs has seen low wages attached, however, as companies are seeing more profit, salary growth is finally starting to outpace inflation.