The number of job vacancies has overtaken the number of jobseekers for the first time since the recession, according to the latest UK Job Market Report from Adzuna.co.uk.

Competition for jobs passed a milestone in October 2014 with the number of jobseekers falling below the number of advertised vacancies; 887,771 jobseekers against 936,596 advertised vacancies. This equals a ratio of just 0.95 jobseekers per vacancy, down from 1.02 in September. Year-on-year, competition for jobs has fallen from a ratio of 1.69.

Total advertised vacancies increased by +25.1% year-on-year in October, reaching 936,596 available positions. This comprehensively beat the previous post-recession high of 906,191 set in September 2014, representing a monthly increase of +3.4%.

Advertised salaries increased by +4.3% year-on-year in October to £34,670, outstripping a low Consumer Prices Index (CPI) inflation rate (1.3%) to provide the UK with its first taste of respectable real wage growth since before the recession. This is the third consecutive month in which annual salary growth has kept its leading margin on CPI; in real terms, advertised salaries have gone up by £997 over the year to October.

Andrew Hunter, co-founder of Adzuna, commented: “For the first time in six years, the number of jobs on offer has eclipsed the number of people looking for work. Job applicants are in a much stronger position than they were a year ago, as employers offer higher salaries in the hope of attracting the very best talent. Over half a million fewer people are unemployed than a year ago. It might feel like a rare planetary alignment to those who started out their careers in the midst of a global recession, but annual salary growth maintaining a lead on inflation for three months on the trot is an excellent sign.”

“But even though the recovery is rocketing forward, it’s important to keep our feet firmly planted on the ground. The increase in job vacancies is aided in part by a natural swell as the festive season approaches. Nevertheless, the upturn in temporary seasonal jobs is to be welcomed with open arms as it paves the way for real wages to reach the people that need it most in time for Christmas.”

Graduate jobs reported the strongest annual increase in advertised salaries during October 2014, rising by +15.7% to an average of £26,438.

Mr Hunter said: "After being stuck in the pipeline for a few years, the UK’s graduates are finally able to start making serious career moves. The large increase in the salaries of advertised graduate jobs clearly reflects this as the entry-level bottleneck starts to ease. People who have been effectively sitting in traffic at the bottom of the career ladder are now being given the promotional green light. This is especially true of industries like IT and Manufacturing that have recently moved back into the fast lane.”

Every region of the UK saw annual advertised salary increases in October with the sole exception of Scotland. The average advertised salary in Scotland fell by -0.9% year-on-year to £33,011, as the nation’s economy seeks to regain its inertia after the uncertainty brought about by the referendum. Scotland has been hit particularly hard by a general downturn in the Energy, Oil and Gas sector in October. Faring far worse than the UK in general, salaries in this sector saw an annual decrease over seven times the size of the rest of the UK, and two times fewer vacancies year-on-year. 

Andrew Hunter, co-founder of Adzuna, comments: “Scotland is currently feeling the after-effects of a period of uncertainty – absorbing the echoes of a loudly-beaten national drum. Much of Scotland’s talent and business has been seriously considering moving elsewhere in the face of several crucial known unknowns from currency to EU trade regulations. Advertised salaries have suffered as companies regain their balance. The effect of this realignment on annual change of advertised Scottish salaries isn’t helped by the flagging energy, oil and gas jobs compared to last year. The energy and fuel sector is absolutely key for Scotland’s economy, as the referendum debates made clear to the UK’s general population.

“However, just as Scotland feels the pinch in October as one of its key job sectors underperforms, the North East and Yorkshire & The Humber have all taken full advantage of the opportunity to play to their strengths as jobs in the manufacturing sector see a twelve-month advertised salary increase of 10.4%. With increasing business, these Northern powerhouses are raising salaries in order to attract the very best talent – a possible sign of a skill shortage in the North’s manufacturing talent-pool.”