Power shifts in UK job market as competition for top jobs falls
Ahead of the announcement on the lifting of restrictions by Boris Johnson, the latest data from the UK independent job board, CV-Library, reveals that the current position of the UK job market, revealing a deepening of the power shift in favour of job seekers.
The number of job vacancies increased by +12.3% during June, whilst the number of applications has remained low, dropping by 3.2% month-on-month and by a significant 22.2% year-on-year.
These changes have resulted in a whopping –13.8% decrease in the number of applications per role, placing power back in the hands of candidates once again. The industries which have witnessed the greatest drop in applications per vacancy include hospitality (down 39.5%), customer services (down 27.9%) and distribution (down 25.3%).
Lee Biggins, CEO and founder of CV-Library comments: “As the UK prepares to open up fully at the end of the month, businesses have been increasing their hiring efforts extensively. While this massive influx of vacancies is certainly positive for job seekers, it has flipped the power dynamic of the UK job market on its head. This change means that candidates now hold the power and it’s important they use this opportunity to really negotiate for the job and compensation that they want.”
The data shows that businesses are already responding to this power shift, with salaries increasing by +16.2% month-on-month. The industries that experienced the biggest salary jumps were the hospitality sector (up 9.1%), the distribution sector (up 7.4%) and the design sector (up 6.5%).
Biggins continues: “The Prime Minister’s upcoming announcement will likely reinforce this new power dynamic as more businesses return to normal. As such, employers will need to bring their A-game when it comes to hiring staff this summer. Business owners should evaluate the compensation package they’re offering to new staff and make adjustments if necessary. Failure to do so will have a significant impact on their ability to hire and could delay their recovery from the pandemic.”