Job vacancies reach a record high in October, with 9.2 percent more vacancies than in October 2012 Competition for jobs hits a record low in October, with 1.7 jobseekers per vacancy, down from 2.3 in October 2012. The booming construction sector is driving jobs growth in the South, with a focus on homebuilding, and infrastructure projects like Crossrail. Nine of the top ten cities to find a job are in the South, including Cambridge, Guildford, Reading and Oxford, where there are twice as many vacancies as jobseekers And nine of the worst ten cities to find a job are in the North, with more than 20 jobseekers for each vacancy in Salford, the Wirral, Sunderland, and Hull. Despite widespread optimism in recent weeks that UK pay rates are beginning to recover, the up-to-the minute salary data from Adzuna shows that wages have yet to respond to rising demand. The North-South divide in the job market has widened dramatically as a construction boom in the South boosts jobs vacancies, according to the latest UK Job Market Report from Adzuna.co.uk Based on the number of jobseekers per vacancy, in October nine of the best ten cities to find a job were in the South of England, while nine of the worst ten cities were in the North. In October, it was 100 times more difficult to get a job in Salford, where there were 28 jobseekers per vacancy, than in Cambridge, where there were just 0.28 jobseekers per vacancy. Overall the UK jobs market improved in October, with a marked increase in the number of advertised vacancies.

There were 748,923 vacancies in total, a 9.2 percent increase from the previous year, and a 5.3 percent increase compared to September – the biggest monthly increase in over a year. The growth in vacancies has been helped a dramatic increase in the trade and construction sector. The number of advertised construction vacancies has increased by almost a third (31 percent) compared to just six months ago. Construction accounts for over 6.3 percent of the UK’s economic output and its growth is reflective of a sustained economic pick-up.

But the construction boom has also widened the North-South divide, with many of the largest infrastructure projects – including Crossrail, which will require 14,000 workers at the peak of construction[1], and the improvement of London’s Northern Line – creating jobs in the South of England. In London, the number of construction vacancies was 95 percent higher year-on-year in October, whilst in the South East, advertised vacancies increased by 89 percent. The boom in construction jobs is also driven by a surge in homebuilding, with growing demand for houses filtering through to the jobs market. New housing now accounts for 19.4 percent of total construction output, 5.1 percent higher than the lowest point in Q3 2009.[2] But while the demand for new housing is strongest in the South and South East, where property prices are highest, the majority of this work is likely to be focussed in these regions. Andrew Hunter, co-founder of Adzuna, explains: “The booming construction sector has driven a wedge in the national job market, and split the North-South divide wide open. Construction has been kick-started by a major infrastructure overhaul in the South, with vacancies focussed mainly in these regions. This stark divide is set to widen further when projects such as the Thames Tideway begin in the South.” Of the 55,663 construction vacancies advertised in October, almost half fell in London (30 percent) and the South East (a further 18 percent). By contrast, only 6 percent of advertised vacancies were in the North West, and just 3 percent were in the North East. But while the number of vacancies is booming, wages have yet to respond to rising demand. Average advertised salaries in October fell 2.2 percent from September to just £33,245. This is 1.3 percent lower than last October, meaning that the average British worker is £1,179 worse off in real terms this winter. Andrew Hunter, co-founder of Adzuna, explains: “The jobs market is thriving with new opportunities for jobseekers, and vacancies have hit a new record high. But inflation is still leaving many out of pocket. In real terms, wages have fallen £1,179 since last year, which is cutting into the Christmas budgets for many. Wages are still recovering from the economic downturn, and are slipping further behind the cost of living, as employers keep a cap on advertised salaries.

Where are all the jobs? Nine of the best cities to find a job were in the South. Aberdeen was the only city outside the South of England to have more than 1 job available per jobseeker. An important centre for the oil and energy industry in Europe, it was the only northern city to rank in the top ten. Cambridge was again named the easiest city in the UK to find a job, with more than three times the number of jobs than jobseekers. By comparison, four of the worst cities in the UK to find a job – Salford, Wirral, Sunderland and Hull – all have more than 20 jobseekers per vacancy. Birmingham is now the tenth worst city to find a job, but prospects could increase if HS2 is created, as this would form an important link between the South and the Midlands.

Andrew Hunter comments: “The North-South divide has never been so significant. Large construction projects are driving local labour markets down South, while many of the traditionally public sector-reliant Northern towns are being left in the dust. Aberdeen is something of a satellite city, with the construction sector bolstered by a thriving energy industry, which demands both engineers and infrastructure. “Mirroring the improvements we have seen in construction, the IT & Technology, and scientific sectors have also been racing to recovery. Cambridge, the best city in the UK to find a job, is a perfect storm, being a hub for all three industries. As a result, there are over three vacancies for each jobseeker to choose from.” In terms of salaries, the most promising signs of a salary recovery can be found in Wales and Scotland, with wages in these areas both up year-on-year in October. But the rest of the UK is lagging behind, with negative wage growth recorded in the remaining ten UK regions.

Organisations that develop cross-disciplinary, diverse teams perform better – but lack of “inclusive leaders” hinder success. An overwhelming majority (84 percent) of business executives say that their organization’s ability to develop and manage teams will be essential for future competitiveness, according to a global EY survey. Those who rate their companies as “excellent” at building diverse teams are much more likely to have achieved earnings before interest, taxes, depreciation and amortization (EBITDA) growth of greater than 10 percent over the past year. The same correlation is true for companies with teams that have become more geographically dispersed over the past three years and increased EBITDA growth levels. Yet, half of the 821 respondents to The power of many: How companies use teams to drive superior corporate performance do not have the leaders with the ability to manage and motivate these teams. This is despite 85 percent deeming “inclusive leadership”, or the ability to encourage teams to voice diverse perspectives and dissent, to be an effective means of improving performance. Many companies also struggle to resolve the dilemma of the need for cross-border, cross-functional teams, and the preference of employees for face-to-face meetings over other forms of communication. Sixty-five percent say that the extent to which teams are facilitated by technology rather than face-to-face interaction has increased over the past three years, but face-to-face communication is the clear leader as the most valued method of communication. Mike Cullen, EY’s Global Managing Partner – Talent, says: “Increasingly, a company’s ability to form, lead and nurture high-performance teams will be critical to its long-term success. To achieve superior performance, tapping into the full range of diverse skills and expertise at their disposal is essential. High-performance teams have a shared commitment to quality and results. They focus on achieving the highest standards and the best outcome, and are aligned behind achieving this goal.”

Dina Pyron, EY’s Global Director of Human Capital, says: “You have to know when to make a decision and that takes leadership. A collaborative approach enables you to know directionally where you need to go, but someone has to take the decision. You also need accountability to ensure that everyone understands their role and responsibility. If one member is consistently dominant and the other team members feel subordinate to him or her, the team is unable to make use of the diverse skills and experience that it possesses.” The findings reveal effective team leaders demonstrate the following actions: Provide clear direction and leadership; Create an open and inclusive team culture; Empower; Develop and coach.

Three broad characteristics are also highlighted that high-performance teams are likely to demonstrate: A shared vision; The right mix and Commitment to quality and results. Cullen adds: “It’s crucial for companies to define what they mean by high-performance teams and then to embed that in a more consistent way, transferring best practice from one team to another so that it evolves into a high-performance culture. By setting a minimum baseline and then a set of aspirational goals for teams around the world to reach, you can define what ‘best in class’ looks like and move towards that globally.”

[1] Crossrail Careers website, October 2013

[2] ONS, Output in the Construction Industry, October 2013