Job Market Report Q3 2016

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1 Job Market Report 2016 Welcome to CV-Library s quarterly analysis of the job market, revealing the most prominent recruitment trends across the UK s key cities and sectors. Despite uncertainty on how the UK s job market would favour over the summer months, especially post-eu referendum, data actually reveals that the Brexit backlash is yet to hit, as salaries continued to rise, job growth was strong, and candidate appetite was in full force, when comparing year on year data. Key Data Applications, Salaries and Jobs across the UK Annual Change ( 2016 vs. 2016) Quartely Change ( 2016 vs. Q2 2016) Jobs 439, , , % 4.6% Applications 7,283,360 7,327,764 7,096, % -0.61% Average Salary 32,596 32,388 31, % 0.6% Businesses Maintain Recruitment Efforts Throughout the Summer Months It s positive to note that job growth has spiked when comparing both year on year and quarter on quarter data. An increase of 8.1% was seen across the UK in 2016 (year on year), while there was a rise of 4.6% quarter on quarter. This is good news for the nation and indicates that the UK s labour market did not fall victim to the typical summer slowdown this year, especially given that there is still a great amount of uncertainty around the impact of the Brexit on UK jobs. Our data tells us that certain regions, and industries, are thriving and it s clear that employers within these areas have recognised the need to tap into candidates who might have used time off during the summer months to think about, and look for, new opportunities. Regional Job Growth Job growth was experienced all over the UK in, thanks to another standout summer for hiring. After Southampton, northern cities Liverpool and Manchester witnessed a hike in job creation, while Scottish cities Glasgow and Edinburgh also saw above-average increases. All of these jumps could be an attempt to create a skilled, healthy workforce which can weather any potentially uncertain times ahead. 1

2 Top 10 Job Growth Cities Southampton 5,137 5,372 3, % Liverpool 5,548 5,980 4, % Manchester 16,153 16,869 14, % Glasgow 3,412 3,184 3, % Edinburgh 2,414 2,694 2, % Cardiff 3,245 3,808 3, % Birmingham 21,957 23,444 20, % Leeds 11,030 12,675 10, % Brighton 2,673 2,687 2, % Bristol 6,370 8,482 6, % Glasgow 10.7% 10.7% 9.5% Edinburgh 9.5% 3.7% Leeds 3.7% 12.4% Manchester 12.4% Liverpool 18.9% 18.9% Birmingham 6.1% 6.1% Cardiff 6.5% Bristol 0.42% 6.5% 0.42% Southampton 31.5 % 31.5% 1.6% Brighton 1.6 % 2

3 Job Creation Continues in Key UK Sectors Key industries across the UK have continued to invest in job growth, and the overall picture appears to be largely positive; the Distribution, Arts/Graphic Design, Military/Government and Catering sectors have thrived when comparing job data from 2016 to of However, Retail job creation fell, with a 10.2% decrease annually, potentially as a result of a drop in sales post-brexit due to customer caution. Alongside this, Public Sector roles dropped by 9.1%, which could be attributed to ongoing issues in the sector. Distribution 15,394 11,359 11, % Arts/Graphic Design 2,881 2,830 2, % Military/Government 3,292 3,341 2, % Catering 6,980 6,385 5, % Automotive 22,555 21,992 18, % Manufacturing 15,454 14,403 12, % Marketing 6,908 7,317 5, % Social Care 18,947 17,661 15, % Legal 3,586 3,845 3,040 18% Medical/ Pharmaceutial 25,360 25,979 22, % Applications Soar in Key Sectors While applications were up in 2016 compared to the previous year, this number remained relatively low, and could be attributed to the time of year and general worry across the nation post-brexit. But, despite it not quite keeping pace with job creation, some sectors, such as Manufacturing, Construction and Marketing, did witness above-average application rates. This increased candidate interest is crucial for long-term business sustainability across the UK s core industries, particularly as the UK embarks on its exit from the EU. 7,300,000 7,250,000 7,200,000 7,150,000 7,100,000 7,050,000 7,000,000 Applications 2015 vs

4 Top 10 Sectors for Application Increase Arts/Graphic Design 43,654 40,700 35, % Manufacturing 515, , ,916 22% Agriculture 9,975 12,086 8,241 21% Leisure/Tourism 20,580 21,439 17,751 16% Distribution 492, , , % Construction 648, , , % Automotive/ 224, , , % Aerospace Marketing 96, ,713 88, % Social Care 188, , , % Education 267, , , % According to the data, some sectors saw a fall in applications year on year and while this can be deemed as negative, job vacancies in these industries were also down, signifying a wider issue. A large amount of this decline can be attributed to uncertainty across these areas; the Retail sector for example saw a slump over the summer months due to a drop in sales post-brexit, while the Public Sector continues to face many challenges. Public Sector 42,548 54,661 58, % Charity 12,809 12,940 17, % Retail 217, , , % Salaries Remain Steady Year-On-Year 2015 vs 2016 Having witnessed salary increases in July (3%), August (4.7%) and September (2%), it s clear that businesses across the country are pushing hard to attract top talent, with nationwide salaries rising by 3.3% year-onyear. This figure is well above the national inflation rate and a positive indication that business confidence is high and the UK is standing strong in the face of ongoing uncertainty. 32,450 32,400 32,350 32,250 32,200 32,150 32,100 32,

5 Key industries saw particular growth in wages in, most notably in Medical, Public Sector and Agriculture. This could be as a result of low application rates in these sectors, which is prompting many businesses to focus harder on having the best offerings to attract workers into their companies. Medical 43,216 35,332 33, % Public Sector 35,789 31,344 30, % Agriculture 30,142 28,109 25, % Catering 24,370 24,086 22, % Leisure/Tourism 26,104 26,272 24, % Retail 27,764 29,607 25, % Accounting/Finance 32,432 31,733 30, % Education 29,807 30,362 28, % IT 41,847 41,318 39, % Legal 29,924 28,048 28, % Salary Increases in Major UK Cities Outpace National Average The same picture was also seen across the UK, with salary increases being seen in the nation s key cities, showing a desire to increase wages across Great Britain. Glasgow came top of the list, with a 7.5% increase in advertised income, while Exeter, Sheffield and Guildford also experienced healthy growth. Ranking at the bottom of the list was London, where salaries increased by just 2.2%, lower than the national average of 3.3%. Due to the rising cost of living in the capital, it is unlikely that this number will maintain pace, and this can place strain on the city s workers. Glasgow 43,216 35,332 33, % Exeter 35,789 31,344 30, % Sheffield 30,142 28,109 25,724 6% Guildford 24,370 24,086 22, % Hull 26,104 26,272 24, % Leeds 27,764 29,607 25,848 4% Birmingham 32,432 31,733 30,395 4% Manchester 29,807 30,362 28, % Brighton 41,847 41,318 39, % London 29,924 30,159 28, %* *This figure was below the national average, but still a top ten city 5

6 Some Areas Still Took a Hit Despite overall salary increases across the majority of the country s key cities, some areas did see a decline in salaries, such as Cardiff, Bristol and Liverpool. Some of these cities have not fared too well over the summer months, with drops in applications and vacancies potentially driving down salaries. Q Q Q Annual Change (Q vs. Q2 2015) Cardiff 24,086 23,714 24, % Bristol 44,544 43,644 45, % Liverpool 25,813 25,198 26, % Inverness 34,389 33,972 35, % Portsmouth 27,269 27,894 27, % Furthermore, advertised salaries took a slight hit in both the Hospitality and Charity industries, indicating that businesses in these sectors may have to work harder in other areas to lure in talented applicants. Q Q Q Annual Change (Q vs. Q2 2015) Hospitality 25,339 25,507 26, % Charity 25,124 25,889 26, % Automotive 30,682 30,228 30, % In Summary While all eyes of late have been firmly focused on the UK s economy as a result of the much talked about Brexit and a weakened currency, CV-Library s findings paint a positive picture. It is still unknown exactly how the UK s labour market will be affected by these changes, but with formal negotiations around the UK s intention to leave the EU not taking place until the early part of next year, it s important that we sit tight and focus on the fact that the current job market is still performing well and that organisations are continuing to invest in their current and future workforces. Contact the CV-Library Press Office for further infomation: or

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