Blog

6 July 2017
UK salaries increase despite BREXIT uncertainty

According to the latest statistics from CV Library, UK salaries saw a steady increase last month, rising by 1.3% when compared with data from June 2016, despite there being a great amount of uncertainty following last month’s general election. It’s been one year since the UK voted to leave the European Union, but the impact of BREXIT on UK salaries still leaves many uneasy.

The data found that Glasgow experienced an increase in job vacancies by almost a quarter (24.1%) and salary growth of 4.6% amongst other major UK cities. The data also highlighted that compared with last month with figures from June 2016 found that average salaries were up by 1.3%, whilst major UK cities such as Sheffield (11.3%), Cardiff (10.9%) and Edinburgh (7.4%) saw the most significant salary growth. When comparing June 2017 data with June 2016, the cities which saw strongest salary growth included:

  1. Sheffield – 11.3%
  2. Cardiff – 10.9%
  3. Edinburgh – 7.4%
  4. Glasgow – 4.6%
  5. Leeds – 3.3%
  6. Manchester – 1.6%
  7. London – 1.5%
  8. Bristol – 1%
  9. Brighton – 0.5%
  10. Southampton – 0.2%

CV-Library’s Founder and Managing Director Lee Biggins comments: “We are now one year on from the EU Referendum, and with post-election uncertainty still looming, it is very positive to see that salaries are continuing to rise at a steady rate, across the UK.

“Many key cities and sectors have seen positive growth, indicating that businesses across the nation are still working hard to attract talented candidates to their vacancies, despite these unpredictable times.”

The top industries that saw a salary increase are:

  • Hospitality – 15.2%
  • Design – 9.1%
  • Agriculture – 6.9%
  • Public Sector – 6%
  • Social Care – 4.7%
  • Education – 4.7%
  • Automotive – 3.8%
  • Charity – 3.1%
  • Accounting – 2.3%
  • Property Services – 2.3%

With this in mind, despite the positive increase in job growth and average salaries, this was not felt across the board when it came to candidate application rates, which saw an 11.6% drop when compared with June 2016.

Biggins concluded, “While it’s great to see that businesses have not cut down their hiring plans, it’s clear that there is still a lot of uncertainty across the nation and therefore, unsurprising that application rates have taken a dip. The onus is now on organisations to continue to work hard to offer attractive packages and entice individuals into their roles. While candidate appetite does tend to drop in the summer months, as the dust settles post-election we hope to see application rates pick back up.”

There is still a lot of uncertainty across the UK and it’s therefore unsurprising that candidate uptake has taken a dip. The summer is usually a quieter time in the recruitment world, but post-election application rates may increase once things settle down.

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