UK labour market firms after recent slowdownUK labour market firms after recent slowdown

In December, the Recruitment and Employment Confederation conducted a poll that revealed a noteworthy change among British businesses. They seemed to be cautiously hopeful, increasing salary and expressing a fresh interest in recruiting. This trend shows continued inflation worries in the labour market, which may draw the attention of the Bank of England.

According to the study, although permanent worker recruitment continued to dip last month, it was not as severe as it had been in November. Employers seemed somewhat more confident, despite their continued concern about the status of the economy. This change in attitude, along with a modest but noteworthy increase in hiring intentions, shows a delicate balance between caution and a rising feeling of stability among businesses.

The Recruitment and Employment Confederation found some interesting changes in the hiring trends for casual workers in December, with a lower drop in hiring than in November. Even though this change wasn’t as big, it still led to a small gain.

Neil Carberry, CEO of the REC, accepted that things were changing and pointed out that the job market was slowing down but seemed to be slowly getting better. He was upbeat and said that December is a time when normal job tasks are often put off until the next year. Even with this trend, the fact that hiring dropped less sharply during this time showed that the job labour market might be able to bounce back even though the economy is still having problems.

Also, pay for both regular and casual jobs went up significantly, faster than the rates seen in November. It’s important to note, though, that the pay rise for regular staff was the second-smallest since March 2021. Why might this be? In August, the Bank of England raised its base interest rate to 5.25%, which was the highest level in 15 years. The central bank has kept this rate the same because they want to fight inflation by having the cost of getting money high for a long time.

Official data shows that pay rose by 7% in the three months before October, which shows that the Bank of England is still very worried about the fast rise in pay rates. At its meeting on February 1, the bank is likely to keep interest rates the same. However, buyers in the labour market think that rates will go down up to five times in 2024.

According to the REC study, the number of job openings went down for the third time in four months. At the same time, the number of qualified applicants continued to rise, though not as quickly as in November, which was the biggest rise in almost three years. It’s important to remember that this poll was based on answers from about 400 hire firms between December 6th and December 18th. These responses give a picture of the job market at that time.

Read More : Trump’s business companies got millions from foreign governments, Democrats say

Leave a Reply

Your email address will not be published. Required fields are marked *