2024-09-08 23:11:28
(Reuters) – Britain’s labour market cooled noticeably last month as job placements fell sharply and pay growth slowed, according to a survey of recruiters on Monday that could bolster the case for interest rate cuts from the Bank of England.
The monthly Report on Jobs from the Recruitment and Employment Confederation trade body and accountants KPMG showed permanent job placements dropped at the fastest pace in five months.
Starting pay growth for permanent staff also fell to a five-month low, one of the weakest readings since early 2021.
Jon Holt, KPMG’s UK chief executive and senior partner, said business confidence continued to fluctuate, despite an interest rate cut from the BoE last month.
“The news that while salaries rose last month it was at the weakest rate since March could help make the case for more rate cuts when the Monetary Policy Committee meets to decide the future path of interest rates,” Holt said.
The vast majority of economists polled by Reuters think the BoE will wait until November to reduce interest rates again, although financial markets currently show a one-in-four chance of a rate cut on Sept. 19.
Official labour market data on Tuesday are expected to show robust employment growth and a further moderation in pay growth.
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Table of Contents
UK Labour Market Cools: Job Placements Fall, Pay Growth Slows
Britain’s labour market has experienced a significant cooldown, with job placements falling sharply and pay growth slowing down, according to a recent survey of recruiters. This development could strengthen the case for interest rate cuts from the Bank of England.
Job Placements at Five-Month Low
The monthly Report on Jobs from the Recruitment and Employment Confederation trade body and accountants KPMG revealed that permanent job placements dropped at the fastest pace in five months. This decline in job placements is a concerning trend, especially since the UK labour market has been a key driver of economic growth in recent years.
Pay Growth Slows Down
Starting pay growth for permanent staff also fell to a five-month low, with one of the weakest readings since early 2021. This slowdown in pay growth is a worrying sign, as it could have implications for consumer spending and overall economic activity.
Business Confidence Fluctuates
Jon Holt, KPMG’s UK chief executive and senior partner, noted that business confidence continues to fluctuate, despite an interest rate cut from the Bank of England last month. This uncertainty is likely to affect investment decisions and hiring intentions, further cooling the labour market.
Implications for Interest Rates
The news that salaries rose last month at the weakest rate since March could help make the case for more rate cuts when the Monetary Policy Committee meets to decide the future path of interest rates, according to Holt. This could have significant implications for the UK economy, as interest rates have a direct impact on borrowing costs and consumer spending.
Labour Market Statistics
For those interested in exploring the UK labour market in more detail, there are several resources available. The UK Labour Market Statistics briefing paper from the House of Commons Library provides the latest statistics and analysis on employment, unemployment, economic inactivity, and earnings in the UK [1[1[1[1[1[1[1[1]. Additionally, the Labour Market Overview statistical bulletin from the Office for National Statistics (ONS) offers estimates of employment, unemployment, economic inactivity, and other employment-related statistics for the UK [2[2[2[2[2[2[2[2].
Labour Market Outlook
The Labour Market Outlook report from the Chartered Institute of Personnel and Development (CIPD) provides analysis on recruitment, redundancy, and pay intentions, combined with unique insights on labour market trends [3[3[3[3[3[3[3[3].
the cooldown in the UK labour market is a concerning trend that could have implications for the economy as a whole. As the labour market continues to evolve, it is essential to stay informed about the latest developments and trends. By monitoring labour market statistics and staying up-to-date with the latest research and analysis, individuals and businesses can make informed decisions and navigate the changing economic landscape.
UK Labour Market Cools: Job Placements Fall, Pay Growth Slows
Britain’s labour market has experienced a significant cooldown, with job placements falling sharply and pay growth slowing down, according to a recent survey of recruiters. This development could strengthen the case for interest rate cuts from the Bank of England.
Job Placements at Five-Month Low
The monthly Report on Jobs from the Recruitment and Employment Confederation trade body and accountants KPMG revealed that permanent job placements dropped at the fastest pace in five months. This decline in job placements is a concerning trend, especially since the UK labour market has been a key driver of economic growth in recent years.
Pay Growth Slows Down
Starting pay growth for permanent staff also fell to a five-month low, with one of the weakest readings since early 2021. This slowdown in pay growth is a worrying sign, as it could have implications for consumer spending and overall economic activity.
Business Confidence Fluctuates
Jon Holt, KPMG’s UK chief executive and senior partner, noted that business confidence continues to fluctuate, despite an interest rate cut from the Bank of England last month. This uncertainty is likely to affect investment decisions and hiring intentions, further cooling the labour market.
Implications for Interest Rates
The news that salaries rose last month at the weakest rate since March could help make the case for more rate cuts when the Monetary Policy Committee meets to decide the future path of interest rates, according to Holt. This could have significant implications for the UK economy, as interest rates have a direct impact on borrowing costs and consumer spending.
Labour Market Statistics
For those interested in exploring the UK labour market in more detail, there are several resources available. The UK Labour Market Statistics briefing paper from the House of Commons Library provides the latest statistics and analysis on employment, unemployment, economic inactivity, and earnings in the UK [1[1]. Additionally, the Labour Market Overview statistical bulletin from the Office for National Statistics (ONS) offers estimates