Competition for jobs has dropped while average advertised salary growth has doubled, according to Adzuna’s July UK job market report.

The report, released today, says advertised salaries grew 1.7% to £32,933 between May and June, more than twice the growth rate in the previous month (0.6%). It was the third consecutive month in which advertised salaries rose.

The report says there were 839,950 positions advertised in June, 22.3% more than a year ago.

The unemployment rate fell to a six-year low of 6.5%, with competition for jobs dropping to 1.21 applicants for every advertised vacancy in June, down from 2.1 in June 2013.

The report also says there were now more vacancies than candidates in 23 cities in the UK, including Cambridge, which topped the list with more than six jobs for every candidate.

Report author Becky Harkins says the rapid increase in advertised jobs was believed to be due to companies becoming more confident about the future: “It’s a really positive sign, not just of the jobs market but of the economy as a whole.”

Across the UK, the graduate jobs sector has experienced the largest salary increase, rising 5% year-on-year to £24,762 in June. This was followed by the trade and construction sector with 3.5%, and accounting and finance with 3.1%. 

Retail candidates, however, saw the greatest decline in advertised pay rates, down 2.7% to £27,145.

Ten out of 12 UK regions saw annual salary growth. Wales, the South-West and the North-West improved the most, with increases of 19.3%, 5.1% and 3.5% respectively.

Adzuna co-founder Andrew Hunter said employers were raising salaries to attract top talent and, while the increase was encouraging, he warned there was no room for complacency.

“Even with the recent advertised salary growth factored in, real wages have fallen by over £1k in the last year. Until wages finally leapfrog inflation, many will continue to feel the economic pinch.”

The only regions where there was no year-on-year salary growth were London (-3.2%) and East Midlands (-1.2%).

London salaries did rise 1.5% in June to £40,446 and while still behind what they were last year, they were “heading in the right direction”, Harkins said.