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Strong graduate market drives up salaries

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Average salary growth doubled month-on-month in June, driven by a strongly performing graduate market, according to research by recruitment company Adzuna.

The Adzuna Job Market Report suggests average advertised salaries grew by 1.7% between May and June, up from 0.6% between April and May. Average salaries now stand at £32,933.

However, despite the strong showing in June, average salaries have still fallen 1.2% over the past year, the equivalent of £1,054 lower than 12 months previously.

Advertised graduate salaries have bucked this trend and increased 5% year-on–year since 2013. The average is now £24,762, up from £23,590 the same time last year.

There has been growth across the UK, with 10 out of 12 regions seeing a rise in average salaries. The region that has seen the biggest increase in advertised salaries over the past 12 months is Wales, where salaries now stand at £29,499, up 19.3%.

Across the same period wages in London have fallen by 3.3% to £40,446. This was despite a strong month in June when advertised starting salaries rose by 1.5%.

Report author and Adzuna employment specialist Becky Harkins told HR magazine the strong graduate market is a sign employers are once again "looking to the long-term".

"Increased confidence means finally companies can look to make people investments where they won't see a full return for five or 10 years," she said. "But across all areas there are signs that everything is moving in a positive direction. Although year-on-year salaries are still down, several months of successive growth show salaries are finally improving and catching up with the recovery."