The UK jobs market experienced a modest increase in vacancies during September 2024, driven by sectors such as Trade & Construction, Logistics & Warehouse, and Graduate roles, according to the latest UK Job Market Report from Adzuna.

The report showed that job adverts increased by 0.39% from August to a total of 861,085, marking the third rise in job listings this year. Despite this monthly uptick, vacancies remain 15.81% lower than the same time last year, highlighting ongoing adjustments in the job market.

This rise in vacancies coincides with a slight drop in unemployment, now at 4.0%, which has reduced the number of jobseekers per vacancy to 2.08. As the job market stabilises, salary growth has continued, with average advertised salaries increasing by 0.24% from August, reaching £38,984. However, salary transparency remains low, with only 46.34% of job listings including salary details, a notable decrease from previous months.

Sectors Driving Growth

The growth in vacancies during September was mainly led by an increase in Trade & Construction roles, which rose by 14.95%. This followed a decline in August but now signals a resurgence in demand within the sector. Graduate jobs also saw a notable increase of 4.6%, reaching their highest levels of the year, while Logistics & Warehouse roles rose by 4.76%. The surge in Graduate roles is particularly significant, with nearly 23,000 positions available and an average advertised salary of £24,736, the highest since Adzuna began tracking data in 2016.

In addition to these sectors, Charity & Voluntary roles grew by 6.57%, while other sectors such as Hospitality & Catering, Social Work, and Teaching saw smaller gains. The report also suggests that the increase in Logistics & Warehouse roles is likely a response to companies preparing for the festive season, where demand typically rises.

However, several sectors experienced a decline in job listings. The Travel sector saw a significant drop of 7.36%, reflecting a slowdown as summer came to an end. Other sectors, including Energy, Oil & Gas, Domestic Help & Cleaning, Customer Service, and Accounting & Finance, also saw declines, with Engineering and IT experiencing slight decreases of 2.6% and 0.22%, respectively.

The Role of Graduate Jobs in the Changing Market

Graduate roles have continued to play an important part in the UK’s evolving job market. The 4.6% increase in advertised Graduate positions in September represents a positive trend for younger jobseekers. With nearly 23,000 roles now available, this is the highest number of Graduate opportunities recorded this year. The average Graduate salary has also hit a record high of £24,736, an encouraging sign for new entrants to the workforce.

In the broader context of the jobs market, the demand for Graduate roles highlights the need for fresh talent, especially as companies seek to fill positions that require new skills in areas like digital innovation, sustainability, and creative industries.

Salary Growth and Transparency

Advertised salaries have seen a slow but steady increase, with a 0.24% rise from August and a 5.1% annual growth. Despite this, salary transparency remains low, with fewer than half of job listings (46.34%) including salary information. This trend continues to make it difficult for jobseekers to gauge the full potential of roles available, especially in sectors where pay is more variable.

Most sectors saw modest increases in average salaries during September, including Graduate roles, Trade & Construction, Customer Service, Admin, and Sales. However, some sectors experienced a decline in advertised salaries, with the Travel sector showing the largest decrease at 2.63%, followed by Energy, Oil & Gas, and Social Work.

The annual salary growth figures also paint a varied picture across industries. Retail saw the highest annual increase in salaries at 14.28%, followed by Social Work (13.85%) and Customer Service (12.89%). These sectors, traditionally offering lower wages, have experienced notable gains in the past year, possibly reflecting efforts to retain workers amidst increasing living costs.

The jobseeker-to-vacancy ratio stabilised in September, with 2.098 jobseekers per available role, a slight increase from August’s figure of 2.087. This stability in job market dynamics reflects the broader trends of a labour market that, while still tight, is settling into a new normal. Some regions, such as the East Midlands, saw no change in this ratio, further indicating that job market conditions have begun to stabilise across the country.

Future Outlook: Vacancies Expected to Continue Rising

Looking ahead, the report offers a glimpse of optimism for the coming months. An early snapshot of October data reveals a further 3.23% rise in vacancies compared to September, driven by sectors like Travel, Retail, and Teaching. This growth is in line with seasonal trends as businesses gear up for the holiday period and as teaching roles continue to grow, particularly in response to ongoing educational needs.

Andrew Hunter, co-founder of Adzuna, noted that while vacancies have hovered between 850,000 and 870,000 over the past year, there are signs of optimism with vacancy growth in key sectors and falling inflation contributing to a more positive outlook for the UK job market. “Average advertised salaries are continuing to rise, albeit very slowly, with a growing lack of salary transparency making it increasingly difficult to track these metrics,” Hunter said. He also pointed to positive movements in sectors such as Trade & Construction, Logistics & Warehouse, and Graduate jobs as key drivers of the current market trend.

As the UK jobs market continues to evolve, employers and jobseekers alike will need to navigate a landscape marked by slow but steady growth in vacancies and wages, coupled with the ongoing challenge of salary transparency and sector-specific fluctuations.