Adzuna: Average salary hit £40,000 in December
The average advertised salary hit a new record last month despite a fall in vacancies, showing firms remain willing to compete on pay to attract top talent, a new survey suggests.
According to job search site Adzuna, the average annual advertised salary passed £40,000 for the first time in December.
Continued demand for skilled staff as well as hesitancy around hiring has pushed salaries up by over seven per cent since December 2023, the firm said.
The increase in advertised salaries came even as the number of vacancies fell by four per cent month-on-month.
Vacancies fell fastest in the retail and hospitality sectors, dropping 19 per cent and 13 per cent respectively. There was also a slight decrease in the number of roles advertised in accounting, consultancy and legal firms.
Andrew Hunter, co-founder of Adzuna, said the decrease could be attributed to “seasonal hiring slowing down over the Christmas period”.
But he pointed to the increase in average salaries as evidence that firms were looking to bring in new staff.
“Whilst it appears companies are not hiring as much, they are loosening their purse strings, with the average advertised salary now reaching over £40,000 for the first time since we started tracking the UK job market in 2016,” he said.
Adzuna’s report reinforces a recent survey from KPMG and the Recruitment and Employment Confederation, which showed that starting salary inflation hit a four month high in December despite a broader slowdown in hiring.
“As 2025 progresses and UK economic growth picks up, businesses will need new talent. Salary inflation being at its steepest in four months shows they are still willing to compete for it,” Jon Holt, chief executive at KPMG UK, said.
Salaries increased fastest in Northern Ireland and the West Midlands, climbing 13.8 per cent and 11.1 per cent respectively.
In London annual pay increased 5.6 per cent over the past year, putting it second from bottom among UK regions, but the average salary remained the highest at £46,113.
Higher wages will be a concern for the Bank of England. Pay growth can reinforce inflation both because it puts up costs for businesses and means consumers have more money to spend.
Official figures showed that regular pay growth picked up to 5.6 per cent in the three months to November while unemployment rose to 4.4 per cent.