Annual salary growth in the UK for the month of April was down 3.8% over the year while the number of job vacancies fell by 0.3% in the same period, according to the latest UK Job Market Report from Adzuna.

The jobs data from Adzuna showed that March 2017’s figures are down 3.8% annually to currently reside at £32,525. Adzuna states that as higher inflation has impacted the UK economy, the effects are trickling down into the labour market and taking their toll on wage growth.

Despite the strain on year-on-year growth, UK salaries are continuing to increase month-on-month and have steadily increased over the past four months Similarly, job vacancies have reached a four-month high, as total figures for April 2017 are currently at 1,156,701. 

Meanwhile, competition for jobs has fallen to 0.45 people per vacancy, down 19.6% compared to last year.

“With inflation on the rise and wage growth stalling, workers are having to make their money stretch further,” Doug Monro, co-founder of Adzuna, said. “The minor monthly increases in salary and vacancies are not a lot to shout about but they may now be consistent and reliable enough to bring some confidence back into the labour market. There is no harm in remaining optimistic as recent reports have already shown that employers are beginning to up pay promises to tempt in top talent – good news for job hunters.”

According to Adzuna data, graduate salaries are up by 2% year-on-year to currently stand at £24,429, with 16,743 total vacancies.

“It’s good to see graduates swimming against the tide in terms of wage growth. Today’s graduates are tomorrow’s CEOs, so it is only right that the newly qualified get a step up into the job market,” Monro said. “With red brick universities awarding many graduates top degree classifications, competition is fiercer than ever which calls for graduates to seek internships so they stand out from the pack.”