HomeBusiness/EconomyBritish Labour Market And Pay Growth, Slow In February

British Labour Market And Pay Growth, Slow In February

According to a study released on Wednesday, permanent job postings declined for the fifth consecutive month in February and pay growth stalled, suggesting businesses’ worries about the economy.

With businesses increasingly likely to hire temporary workers to fill vacancies, the Recruitment and Employment Confederation/KPMG monthly permanent placements index dropped to 46.3 last month from 46.8 in January.

Billings for temporary workers climbed but at a weaker rate than in January, according to the poll.

The employment picture, according to Clare Warnes, partner for skills and productivity at KPMG UK, is having an effect.

Companies continue to employ temporary workers, according to Warnes.

Although several gauges of the larger economy, such as company surveys and information on consumer confidence and state finances, have indicated improvement, alleviating concerns about a protracted recession, Wednesday’s survey reflected recent indications of a downturn in the labor market.

According to REC, increases in starting pay for both temporary and permanent employees were the second-weakest in almost two years.

The Bank of England is concerned about cost pressures in the jobs market but has stated it expects pay growth to slow down. The bank has increased borrowing costs 10 times since late 2021 to combat a surge in inflation.

The healthcare sector had the biggest demand for personnel, according to REC, and openings expanded in February at the fastest rate in four months.

Since March 2021, the rate at which employers could find workers to fill open positions has decreased, but some recruiters claim that recent layoffs have increased the supply of workers.

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