Stalled salaries in advertised vacancies and a slowdown in the jobs market in the UK in March is linked to the upcoming EU Referendum and the new National Living Wage, according to the latest UK Job Market Report from jobs site Adzuna.

The report shows that the average advertised salary was £33,815 in March, increasing just £15 from £33,800 in February. This slowdown in growth comes after monthly rises of 0.6%, 0.8% and 0.6% across the preceding three months. On an annual basis, advertised salaries dropped 2.0% from £34,513 in March 2015.

The implementation of the new National Living Wage in April and the uncertainty surrounding the upcoming EU referendum on 23 June may be bringing some elements of hesitancy to the jobs market and restricting the pay on offer for new staff, according to the study.

“It’s a time of turbulence for the jobs market,” Doug Monro, co-founder of Adzuna, said. “Unemployment is climbing and political uncertainty could well be impacting hiring plans. In particular, recent reports indicate hiring permanent staff may be being put on pause until after the EU Referendum as employers turn to temporary workers to fill gaps. Predictions of risks to jobs and the economy show how vulnerable the employment sector can be to wider economic change.

“The new National Living Wage also poses a natural challenge to the status quo,” Monro said. “Nerves about bigger wage bills could mean staff perks will be first to go to fund company’s extra costs. These reports are already flowing in, with overtime pay already taking a hit. April’s legislation is a crucial step to getting fair pay for existing workers”

All regions across the UK, except Northern Ireland, saw advertised salaries decrease year-on-year, with Scotland (-4.5%) and North East England (-3.4%) witnessing largest falls. Meanwhile, 40 out of 56 cities see more jobs than jobseekers, but many cities are still suffering from ongoing skills shortages.

Meanwhile, job competition eased between February and March, reducing to 0.56 jobseekers per vacancy from 0.59 the previous month. This also marks a significant improvement from the 0.89 ratio in March 2015. 40 out of 56 cities across the UK now have more available positions than jobseekers. Cambridge is leading the way as the best place to secure a job, with just 0.08 jobseekers per vacancy, closely followed by Guildford (0.10) and Oxford (0.11).

Despite this improvement, many cities across the UK could still face ongoing skills shortages. With the upcoming referendum potentially set to affect workforces across many industries, skills could be in even further short supply. A rising unemployment rate suggests a mismatch in jobseekers and openings that need to be filled.

“More available jobs and decreasing job competition form a great combination,” Monro said. “Jobseekers should feel encouraged that jobs are out there. Hopefully, vacancies will keep on increasing as the year progresses. But more does need to be done to make sure workers have the right skills for the jobs on offer.”