Brexit fears are bringing “new unknowns” into the UK finance sector jobs market

Adzuna reports that January 2016 saw a total of 1,079,711 job vacancies advertised in the UK, down 7.3% from 1,164,502 in December – in the largest monthly drop since 2012.

Vacancies in the UK finance sector fell by 6% in the 12 months to January 2016 to a total of 73,039 (January 2015: 77,562).

Advertised job vacancies have now fallen 13.7% since November, when 165,000 more jobs were on the market (1,244,772). A long-term focus on upskilling existing employees and prioritising retention means companies can now sidestep the search for fresh talent, filling positions in-house rather than looking elsewhere.

Doug Monro, co-founder of Adzuna, said: “For jobseekers, this means fewer choices and less flexibility. Job competition has intensified in January, rising to 0.61 applicants per vacancy, up 13% since 0.54 in December.

“At the same time, widespread job losses across a range of UK sectors mean several industry key players are no longer in a position to take on new hires. Energy giant BP cut 7,000 jobs earlier this month, alongside the loss of over 2,500 manufacturing roles by Tata and Bombardier. Lloyds and Virgin Media similarly saw large job losses of 1,755 and 900 employees respectively.”

Monro said: “January’s jobs market has failed to take flight. The normal rhythm of hiring hasn’t happened – vacancy levels are down and job competition is getting tougher. Fewer options for those looking for new jobs is putting pressure on career plans. Hiring habits are changing in a sign of potential instability and employers are retaining their best workers for longer.

“A potential Brexit brings new unknowns into the jobs market. Politicians are at risk of fuelling uncertainty fears – and only increasing doubts. By doing so they’re risking a weaker jobs market. It’s a dangerous game to play – thousands of employers and employees are already on edge.”

He added: “This lack of consensus is causing understandable concern for many companies. Business expansions and hiring sprees are being put on hold as a result. EU languages are still in high demand throughout the UK and whichever road the referendum takes us down, this is sure to remain so.”

Advertised salaries meanwhile reached £33,593 in January, climbing 0.8% monthly – only the third monthly rise in eleven months. This was up from £33,332 in December and suggests the jobs market could bounce back in the coming months.

Monro stressed: “January’s not entirely a disheartening picture – advertised salaries are one bright spot. After a long period of monthly decreases this provides a glimmer of hope that prospects for jobseekers will improve. As we see a stabilisation over the upcoming months, vacancies will hopefully begin to follow the path of salaries and begin to pick-up.”

Manufacturing and Retail sectors caught up in vacancy falls

Alongside a natural January dip in available travel jobs and part-time work, both the Retail and Manufacturing sectors have seen large vacancy falls in the wake of job losses in January. Current vacancies in the Manufacturing sector stand at 14,022 – down 9% from 15,466 roles last month. Similarly, the Retail sector saw vacant positions fall 13% to 32,143, from 36,881 in December.

Fluent French furthers candidate’s chances in UK jobs market

Jobseekers with language skills are managing to buck the downward vacancy trend however – as demand for multilingual workers goes from strength-to-strength.

There are currently over 35,000 job vacancies looking for applicants with linguistic skills and with an average advertised salary of £36,026 for bilingual positions across the UK, it’s a lucrative skill to have.

French is the most popular language with employers, with 8,401 available positions currently asking for proficiency. This is closely followed by German (7,820 vacancies), Spanish (4,267) and Italian (3,856).

Foreign language demand by job sector

The IT sector is keenest to employ linguistically trained employees, with 3,581 advertised positions in the sector currently asking for language skills, alongside teaching, sales, finance and healthcare jobs – all of which have various openings for candidates speaking a second language.

Monro added: “Languages have always been vital to the international ambitions of companies. But now they’re becoming even more lucrative to have as a jobseeker. A French speaker, or German speaker in a company can make all the difference and open up new business channels and deals. In the interconnected world, learning a second language is a fantastic way to differentiate yourself from other applicants and claim a higher salary.

“It’s hard work to learn a foreign tongue, but employers are willing to pay more for it – so it’s a skill worth pursuing. For industries such as IT, which is growing its international reach, and for healthcare, which is dealing with more diverse patients than ever, having another language may soon become a necessity.”