UK Job Vacancies Decline More Sharply Than Peers

Job vacancies in the United Kingdom have significantly decreased, with a 23% drop in postings as of November 29, 2024, according to recruitment platform Indeed. This decline is sharper than the 14% reduction in official government data and indicates a troubling trend in the UK labor market, which is now 12% below pre-pandemic levels. Economist Jack Kennedy from Indeed noted a shift in power towards employers, marked by reduced job postings and a rise in zero-hours contracts. Comparatively, France's job vacancies fell by 22%, while the US and several other nations saw modest declines of 5% to 15%. The situation worsened following the Labour government's budget announcement, which included a £25 billion increase in payroll taxes, causing employers to adopt a cautious hiring approach heading into 2025. Despite these challenges, advertised starting salaries rose by 6.7%, outpacing average earnings growth of 4.8%.