Advertised job vacancies in tech startups have increased by 80% since October 2013, as the number of positions eclipsed the number of job seekers for the first time in six years.
According to the UK Job Market Report from Adzuna, there were 8,554 vacancies available in UK-based IT startups in October 2014.
The average salary for IT startup positions came out at more than £40,000, 26% higher than the average tech sector salary across the country. All advertised IT salaries also increased year-on-year, reaching £44,918 – an increase of 10.2%.
Advertised salaries across all sectors increased year-on-year by 4.3% in October 2014, rising to £34,670.
The average salary for graduates across all sectors was £26,438, a year-on-year increase of 15.7%.
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Adzuna co-founder Andrew Hunter said the higher wages being offered by young technology businesses is likely being driven by an ongoing trend in startup companies, now better described as “scale-ups”.
“Several startups in London and the South East are seeking to increase their capacity, having already established their reputation. This brings with it an increase in the value of IT positions to these companies as infrastructure makes greater demands on their resources," he said.
“In these smaller companies, the need for talented and experienced professionals to oversee the up-scaling process leads to fierce salary competition – hence the stratifying of technology salaries, with places advertising startup salaries above the average. They need to attract the heavy hitters to move up a league.”
For the first time since the recession, the number of job vacancies, across all industries, has overtaken the number of job seekers.
Annual salary growth maintaining a lead on inflation for three months on the trot is an excellent sign
Andrew Hunter, Adzuna
The number of job seekers finally fell below the number of advertised vacancies, with 887,771 compared to 936,596 advertised vacancies. The total advertised vacancies were up by 25.1% year-on-year.
According to Hunter, job applicants are in a much stronger position than they were a year ago, with employers offering higher salaries to attract the best talent.
“More than half a million fewer people are unemployed than a year ago," he said.
"It might feel like a rare planetary alignment to those who started out their careers in the midst of a global recession, but annual salary growth maintaining a lead on inflation for three months on the trot is an excellent sign.”
Hunter said the large increase in the salaries of advertised graduate jobs reflects how UK graduates are finally starting to make serious career moves, as the entry-level bottleneck starts to ease.
“People who have been effectively sitting in traffic at the bottom of the career ladder are now being given the promotional green light. This is especially true of industries like IT and manufacturing that have recently moved back to the fast lane,” he added.