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UK Salaries Drop in the Wake of Brexit

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In the wake of the UK’s Brexit, it has been announced that salaries across the country dropped by *1.9% in June compared to the previous year. This is according to the latest data from job site, CV-Library, which also revealed that despite June being ‘the month of Brexit’, advertised jobs actually sky rocketed, increasing 14.1% nationwide.

Key areas for jobs growth during this period were witnessed in the legal (37.5%), catering (32.8%) and education (32%) sectors, signifying that many businesses are maintaining their recruitment efforts despite economic uncertainty. In addition, every UK region saw job growth of 6%-18% last month, providing further confirmation of a thriving job market:

Job Growth by UK Region – June 2016 vs June 2015

Wales –                18.3%

East Anglia –       16.6%

E. Midlands –     15.6%

South East –       15.5%

Scotland –           15.3%

South West –     14.8%

North West –     14.9%

North East –       8%

W. Midlands –   6.4%

However, despite job growth across the UK, the data goes on to reveal that some key sectors saw significant drops in jobs, applications and salaries last month, when compared to June 2015:

Lee Biggins, founder and managing director of CV-Library, comments: “Last month’s Brexit news has caused concern amongst British businesses, with some sectors struggling more than others. But, while it is easy to assume that any kind of decline is a direct impact of the EU Referendum, looking at the data through an objective lens would suggest it’s still far too early to draw a solid conclusion. Employers and candidates alike should rest assured that despite drops in certain areas, the UK labour market is still growing.”

Another upward trend last month was the increase of job applications, which rose by 5.1% YoY. While this is positive news for employers, it is clear that applications are not rising at the same pace as jobs. This could potentially be down to salary declines, which may deter candidates from making an immediate career move. However, new CV registrations increased by 10.8% nationwide, suggesting there is still strong appetite amongst job-hunters.

Biggins concludes: “We are hopeful that as the immediate aftermath of the Brexit comes to a close, these figures will balance out and we will start to see candidate applications meet employer demand. These are uncertain times, but it is way too early to predict what might happen. In the meantime, organisations must continue to invest in recruitment to support their own growth and productivity.”

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