UK employers will soon be legally required to include salary information in job advertisements, according to a government announcement. The legislation aims to provide greater transparency for job seekers, ensuring they know potential earnings before investing time in applications.
Prime Minister Andy Burnham stated, "Whether you're a young person starting out or a parent trying to support your family, you should know what a job pays before spending your time and effort applying for it." He added, "That's why we will make it a legal requirement for all employers to say what you pay."
Research from the Chartered Institute of Personnel and Development (CIPD) in 2023 indicated that 41 percent of employers consistently included salary details in their job ads, while approximately 27 percent never did.
Burnham also emphasized the need for businesses to create more opportunities for young people, providing them with experience and confidence to enter the workforce. This initiative comes amid concerns about youth employment, with 13 percent of 16 to 24-year-olds in the UK being not in education, employment, or training (Neet) between April and June this year. Earlier in 2024, the number of Neets in this age group exceeded one million for the first time since 2013.
A review into young people and work, led by former Labour health secretary Alan Milburn, is expected to conclude later this month.
In the broader job market, vacancy numbers fell by an estimated 21,000 to 691,000 in the three months leading up to September, according to the Office for National Statistics.
The TUC general secretary, Paul Nowak, welcomed the move, calling the practice of advertising with "competitive salary" frustrating and disrespectful. He argued that candidates should not undergo lengthy application processes without knowing if the pay is sufficient.
Nishi Mayor of the Youth Futures Foundation noted that clear pay information can help young people make informed decisions and potentially lead to more suitable candidates applying for roles, benefiting employers' talent pipelines.
Penny East, chief executive of the Fawcett Society, highlighted the potential impact on gender pay equity, stating that salary secrecy has historically disadvantaged women. Requiring salary disclosure is seen as a significant step toward fairer work practices and addressing the gender pay gap.