While employer demand for new UK workers rose by 1% in May, the salaries on offer for new jobs dropped by 3% compared to the previous month.

According to the Reed Job Index, which is based on data from reed.co.uk and tracks the number of new job opportunities on offer, even the sectors with greatest job demand saw salaries stay steady or decrease.

Across the index the average salary for May was £31,871, compared to £33,220 in April and £33,414 in December 2009.

Martin Warnes, managing director of reed.co.uk, said: “Employer demand rose in May compared to April, with economic confidence edging up in spite of the disruption of the election and turmoil across Europe’s financial markets.

“While it is good the job demand trend is upwards again, recovery remains fragile and salaries for new staff dropped by 3% in May. In spite of [Chancellor] George Osborne’s hopes, the private sector has yet to demonstrate it is taking up the slack in advance of public sector cuts.

“However although employers are still suffering from cost constraints, some are seizing this opportunity to recruit talented people at high value to help grow their businesses.”

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