High street bloodbath sees falling retail jobs, slowing the UK jobs market

However, salaries in London still grew 2.8%

The UK jobs market is experiencing the slowest growth rate since 2010, according to new figures published by leading UK job site reed.co.uk. Its Job Index shows that job growth has slowed since the beginning of the year, with retail jobs having fallen by over 30%.

By sector, figures show a more in-depth picture of the job market. Energy and Estate Agency jobs are also in decline by 19% each.

UK salaries are up by 1.6% in the first financial quarter of 2018, narrowing the gap between wage growth and the rate of inflation and reflecting the CPI figures for March, which reported a drop in inflation rates to 2.7%, down from 3% in January.

Salaries in London grew 2.8% year-on year despite job postings in the region showing a 5% decline. But it’s Scotland that’s topping the table for the biggest salary jump, with an annual boost of 6%. Followed by a surge in Wales, with salaries up 5.8%.

Salaries in the Transport and Logistics sector are outpacing other sectors, with an 8% increase year on year. Energy also experienced an increase in salaries, up 5% year-on-year.

Salary changes vs Job index regional breakdown

• Scotland 5.9% -20%
• Wales 5.8% | 4%
• South East 2.9% | 2%
• London 2.8% | -5%
• West Midlands 2.8% | 4%
• Yorkshire 2.2% | -1%
• East Midlands 2.1% | 2%
• North East -1.9% | 3%
• Northern Ireland -7.8% | 7%

 Jobs index sector breakdown

• Apprenticeships -73%
• Retail -31%
• Training -27%
• Energy -19%
• Estate Agency  -19%
• Health & Medicine -18%
• Leisure & Tourism -12%
• Manufacturing 6%
• Construction & Property 8%
• Strategy & Consultancy 26%

 James Reed, Chairman of REED Recruitment said:

“The latest Reed Job Index data shows that the jobs market has slowed dramatically since the beginning of the year. It’s possible that seasonality has led to a disjointed period for UK businesses. As Easter fell earlier in 2018, it’s likely that holidays will have impacted growth, reflected in a marginal reduction in the number of new jobs being advertised at the end of the quarter. However, we must remain cautious. We’ve witnessed declines in key sectors such as Retail, Energy and Estate Agency. This is a clear warning sign that tougher times may lie ahead for the jobs market.

 Comparatively, this news is accompanied by a positive story that salaries have risen by an average of 1.6% during the first quarter of 2018. This will be welcomed news for people across the country who have been feeling the pay squeeze over the past year due to a combination of stagnating wages and rising living costs.”