Employment vacancies across the UK fell to their lowest level so far this year, as one expert warned that Britain is on the verge of a jobs crisis.
Research by jobs search engine Adzuna found that vacancies fell by 2.4 per cent in September, down to 826,205 open positions.
But roles in retail are on the rise, as businesses look ahead to Christmas. About 2.5 per cent of all vacancies were for Christmas jobs, totalling more than 20,000 roles, with retail openings rising more than 8 per cent compared to August.
Consultancy, press relations and marketing were among the sectors showing a sharp decline in roles as firms appear to focus on the most important core offering of their business, rather than adding supplementary positions. Overall, total roles are more than 4 per cent down on a year ago.
Despite the downturn in numbers, companies appear prepared to pay more for the right person, with advertised salaries up 8.8 per cent. However, even with that increase, more than half of listings still omitted salary details.
Adzuna’s Andrew Hunter said that businesses taking longer to ensure they get the right candidate, coupled with fewer vacancies being on offer, means that jobseekers have “more competition and a tougher fight for each role”. It is estimated that there are more than two jobseekers for each vacancy on average, with firms taking an average of 37.3 days to fill a position.
The latest figures have seen the CEO of another recruitment site, CV-Library, write an open letter to Rachel Reeves to warn of an impending tipping point for economic growth if businesses are not backed in the upcoming Budget.
Urging the chancellor to deliver a “pro-jobs Budget in November”, Lee Biggins said the UK is “on the verge of a jobs crisis” and laid out a five-point plan of principles for the government to follow in order to boost employment.
“Unemployment has rocketed to 4.7 per cent, the highest in four years, and businesses are in retreat, rowing back on investment in the face of higher employment costs and a lack of economic confidence. The number of job vacancies has declined for the last 37 consecutive quarters,” read the letter.
“If the country is serious about growth – once its No 1 priority – then the absolute foundation for that is jobs. More people in work boosts tax receipts and national productivity, cuts welfare costs, and provides opportunities for millions to improve their wages and standard of living.”
The five suggestions set out by Mr Biggins were to stop burdening businesses with taxes; to cut red tape around hiring and compliance; to offer tax relief and other hiring incentives for SMEs; to implement a new, balanced employment rights framework; and to incentivise investment in “job-rich” sectors such as hospitality and construction.
