Job prospects improve despite falling salaries

Posted on 4 Jul 2011 by The Manufacturer

Job opportunities across the country have increased, reversing last month’s decline according to the Reed Job Index for June.

June’s Reed Job Index stands at 125, which is 4 index points (3 per cent) up from May. This marks a return back up to April’s level of new job vacancies.

However salaries for new jobs have stayed flat, and are two per cent lower than in December 2009 for the second month running, with the Reed Salary Index standing at 98.

In spite of this, key job sectors in both professional services and traditional industrial areas have reached their highest levels of demand for new staff since the Index began. Demand is up for both pre-qualified Accountants (at 136), fully-qualified Accountants (at 130), and Manufacturing staff (at 155), while demand for General Insurance (at 148) and Engineering staff (at 181) has reached their highest since the Index began.

Overall year on year employer demand is back up 22 points compared to June last year, and is 25 per cent above the level of December 2009 when the Index’s baseline was set at 100, according to the report compiled by the recruitment website

According to Martin Warnes, Managing Director of, demand for skilled, highly-qualified staff has fuelled this month’s increase. “Key job sectors such as Insurance and Engineering reached the highest levels we have experienced since the Index began18 months ago, prompting the launch of a new £50k+ recruitment section on to help employers and job-seekers in this salary-bracket.

“In spite of residual concerns over the economy, opportunities for jobseekers are growing again as employers look for the talent they need to support their ambitions for the future.”

Regionally the East Midlands and East Anglia have shown the biggest jobs growth this month, while demand in London and the South East has recovered from its dip down in May, which has helped boost the Index as a whole.