UK labour market showing signs of recovery as job opportunities increase

The UK labour market is showing early signs of recovery, according to new research by jobs site Reed.co.uk which saw 120,000 new postings added to the site in July — an 8% month-on-month increase.

Job vacancies are beginning to rise in almost all sectors, with 34 out of 38 sectors listed on the site experiencing an increase between June and July.

Vacancies in the charity sector rose by 1356%, scientific sector job listings went up by 245%, and the public sector increased 82%.

Only four sectors saw a drop in job postings — apprenticeships, graduate training, health and medicine, and social care.

Wales saw the highest increase in job vacancies in the UK, going up by 162% between June and July, followed by Northern Ireland where opportunities rose by 51% month-on-month. Vacancies in London rose by 23%.

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However, competition for jobs is also increasing with the average number of applicants per role rising by 48% when compared to pre-COVID-29 levels. There are now 24.5 candidates for each role, compared to 16.5 in February this year.

Phillip Rinn, managing director of Reed.co.uk, said: “With all the doom and gloom in the news, it can be easy for jobseekers to think that their job hunt is over before its even begun. Yet, despite the UK entering a recession, our research shows that job opportunities are increasing in almost all sectors.

“This definitely bodes well for any jobseeker, but, while there are additional opportunities, there is also more competition for each role. Reed.co.uk data shows a 48% increase in applicants per vacancy on average, meaning the typical candidate now faces competition for a job with 24.5 others rather than 16.5.

“While this increase will be unwelcome news to many jobseekers out there, it should also be a glimmer of hope that not all is lost. Now is the perfect opportunity to assess options in new industries, freshen up your CV and learn new skills.

“In the past month, we have seen an 8% increase in the number of job vacancies, a positive sign that the UK labour market is slowly starting to recover.”

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