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May data for the ICAP UK Labour Market indices (UK LMI) shows further improvements in the UK labour market with increased vacancies and reduced competition for jobs. For the second consecutive month, applications per vacancy fell in May (-0.8%), although the ICAP Unemployment Index remains 27% above 2012 levels. Despite declining 3.5pts, the ICAP Vacancy Index remains positive (above 50pts) illustrating the continued growth in both permanent and temporary vacancies across the majority of sectors.
Highlights from the May data release:
- On a MoM basis, both permanent and temporary vacancies grew in May (+3.6% and +4.7%), continuing the increases from April
- On a YoY basis, both permanent and temporary vacancies also grew +2.0% and +3.3% respectively
- A 0.8% decrease in applications per vacancy in May suggests further easing in claimant count is likely
- Average offered salaries fell for a third consecutive month on a 3m rolling basis (-0.4%), although remains marginally above the same period last year
- Education & Training, Automotive, and Transport & Rail were the top three sectors with the strongest quarterly growth, with vacancies increasing 38.7%, 31.1% and 28.7% quarter-on-quarter respectively
- Electronics, Defence & Military, and New Media & Internet were the only three sectors to experience declines in permanent vacancy demand over the quarter. Defence & Military vacancies, however, remain 30.7% above the same three month period last year
- Graduates & Trainees once again experienced the strongest quarterly growth in temporary vacancies (+142.3%) despite large falls in May. Automotive also continued to experience strong quarterly demand, with strong increases in May and +79.3% growth over the quarter
More detail on these highlights may be found in the full press release.
