Recruitment and Employment Confederation (REC) and accountants KPMG survey.
Monthly index of vacancies fell to 53.0 in December, from 54.1 in November
- its lowest since February 2021
Starting salaries for permanent staff and pay rates for temporary workers grew at the slowest rate since April 2021. The rate of growth is showing similar to the average level in the 2 years prior to the COVID-19 pandemic.
REC comments:
- "A slowdown in permanent placements is not unusual in December, but this one comes as part of a wider softening trend in the permanent market"
- "Recruiters tell us that this was enhanced by firms pushing hiring activity back into January in the face of high inflation and economic uncertainty."
The overall picture is still of a robust labour market, although contraction in sectors such as construction is a particular concern given its significance to the health of the economy
While the REC/KPMG survey is closely watched by the Bank of England, the result appear not enough to divert the Bank from hiking rates further. BoE Chief Economist Pill was hawkish in his speech Monday:
Still to come from the Bank of England today:
