London salaries fall as UK becomes less capital-centric, and it could be due to Brexit ⁰

London continues to be the region with the highest number of advertised vacancies (248,605) and the highest average salaries (£38,449), but its previously unassailable supremacy may soon be challenged, a new survey suggests. According to the latest UK Job Market Report from Adzuna real-time jobs data average salaries in the capital have fallen more (-3.9 percent) than any other region in the UK in the past year as salary growth in the rest of the UK catches up at a more consistent rate. This also represents a wider shift in the jobs market as the Government creates a solid post-Brexit UK economy that drives growth across the whole country. It is likely growing trends such as companies relocating their headquarters to cities outside the capital such as Manchester will continue as well as reinvestments into northern powerhouses to revitalise former struggling areas and industries.  With competition for jobs per jobseeker per vacancy rising from 0.43 to 0.45 in January, jobseekers in the capital may have two hurdles ahead in the shape of a more competitive job market and pedestrian salary growth.

Doug Monro, co-founder of Adzuna, says: “It is encouraging to see the UK adopting an approach of shared wealth across the country. Despite the salary decline in London, these figures show that as a whole, businesses are pushing for the jobs market in all regions to not only encourage, but contribute towards, the overall productivity of the UK equally.

“This shift away from a capital-centric focus will open many doors and create multiple opportunities for other regions. In line with the Government’s recent announcement on a cash boost for the North of England to create jobs and invest in new sectors focusing on science, research and innovation, this collective approach is necessary for the UK to develop an effective post-Brexit strategy. If the UK jobs market is to operate in siloes, productivity will stagnate.

“In addition, the shift in the jobs market outside of the capital may also have been caused in part by the property market in London, as unattainable house prices coupled with stagnating salaries force consumers to relocating to increase their disposable incomes and stand a chance of getting on the property ladder.”

Across the country the total number of advertised vacancies fell by 4.8 percent to 1,109,511 in December – ending three months of growth.

Advertised average salaries rose 0.3 percent to £32,323, a brief respite after a tight squeeze on salaries during the festive period. This increase is a positive step in the right direction following the recent period of decline. However, year-on-year, salaries remain 3.1 percent lower than January 2016 to currently stand at £33,323.