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2mo ago

UK Job Vacancies Hit Four-Year January Low as Salaries Surge

New data reveals a sharp decline in hiring across industries while advertised wages climb to record levels, intensifying inflation concerns.

Workers walk through the Canary Wharf financial district, ahead of a Bank of England decision on interest rate changes, in London, Britain, August 3, 2023. REUTERS/Toby Melville/File Photo
Retail was one of the sectors with the highest increases — 14.47 per cent year-on-year

Overview

  • The number of UK job vacancies in January 2025 fell to 828,500, the lowest January figure since 2021, reflecting a 4.5% year-on-year decline.
  • Average advertised salaries reached a record £40,846, a 7% increase from January 2024, driven by competition for talent in sectors like manufacturing, maintenance, and retail.
  • Rising wages are fueling concerns at the Bank of England about sustained inflation, with forecasts suggesting inflation could hit 3.75% later this year, well above the 2% target.
  • Hospitality and retail sectors face significant challenges due to increased National Insurance contributions and minimum wage hikes, with 70% of surveyed hospitality businesses planning job cuts.
  • Trade groups and businesses are urging the government to delay tax changes, warning of potential closures, reduced trading hours, and canceled investments.