Further signs of a loosening jobs market in the UK – wage growth slows, hiring drop

Via the latest Recruitment and Employment Confederation (REC) and KPMG survey

  • growth in starting pay for permanent roles was the lowest since February 2021.
  • monthly index of permanent job placements continued a two-year decline, though the hiring drop was less severe than in August.
  • increase in available candidates for roles
  • vacancies dropped for the 11th consecutive month at the fastest rate since March.

Factors cited included

  • Companies face uncertainty regarding tax and economic policies ahead of finance minister Rachel Reeves’ first annual budget on October 30.
  • Reeves has hinted at potential tax increases to support public services and investment

Implications of the survey results:

  • KPMG said easing pay pressures could support further interest rate cuts by the Bank of England (BoE) in November.

This article was written by Eamonn Sheridan at www.forexlive.com. Source