Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK job vacancies fall at fastest pace since pandemic as business mood darkens

by December 9, 2024
December 9, 2024
UK job vacancies fall at fastest pace since pandemic as business mood darkens

UK employers cut their recruitment efforts sharply in November, with job vacancies falling at their fastest rate since the onset of the pandemic.

Fresh data from KPMG and the Recruitment and Employment Confederation (REC) reveal that demand for staff declined “at a sharp and accelerated pace,” pointing to a deepening malaise in the labour market and denting hopes for a near-term economic uplift.

November marked the 13th consecutive month of easing vacancy numbers, with permanent roles particularly affected. “Businesses are having to weigh up the prospect of increasing employee costs following the Budget, which has led to an accelerated slowdown in hiring activity across the board,” said Jon Holt, group chief executive at KPMG.

Parallel findings from accountancy firm BDO underline the extent of the problem. Its monthly sentiment indicator registered the lowest level of business confidence since January last year. This gloom, coinciding with a period when companies typically enjoy a pre-Christmas boost in sales, suggests that the UK economy may have contracted again in November.

New burdens on employers were introduced in October’s Budget by Chancellor Rachel Reeves, including higher business taxes, an increase in employers’ National Insurance contributions, and a higher minimum wage. While Labour, led by Prime Minister Keir Starmer, has staked its credibility on expanding the economy and raising living standards, the tax hikes appear to have dampened investment appetites and weakened the appetite to hire across the industrial and service sectors.

BDO’s output index, a key measure of economic momentum, recorded its lowest reading since October last year. “December marks the end of a tough couple of years for businesses and the drop in business confidence this month is not a surprise given the significant challenges they continue to face,” said a BDO spokesperson.

As hiring slows and the pool of available candidates grows, the KPMG/REC report suggests that wage growth may begin to soften. Though pay pressures remained largely unchanged in November, they are hovering near their weakest levels in almost four years.

Retailers in particular, who face a combined £5 billion in extra costs from tax and wage changes next year, have warned that further cuts to staffing levels may be on the horizon. The British Retail Consortium estimates that next April’s higher National Insurance contribution and a substantial increase in the minimum wage will pile unprecedented pressure on a sector already grappling with cautious consumers.

Neil Carberry, chief executive of the REC, remains hopeful that today’s turbulence may give way to stability. “The resilience of temporary recruitment offers some hope. Firms are likely to rest more on temps while they manage the current uncertainty,” he said.

Indeed, the near-term outlook may brighten as the Bank of England signals further interest rate cuts through 2025 and the government ramps up investment initiatives. “The prospect of further rate cuts through next year, alongside the government’s investment plans, both point to improved growth in the near term,” Holt added. “This should give businesses greater confidence, which may help stabilise the labour market.”

Read more:
UK job vacancies fall at fastest pace since pandemic as business mood darkens

0
FacebookTwitterGoogle +Pinterest
previous post
Government’s ‘Pansexual and Panromantic Pride Day’ post sparks backlash: ‘Glad this type of bulls— will end’
next post
Skin.Club is making a real breakthrough in the world of skins

You may also like

Adobe to buy design group Figma for $20bn

September 16, 2022

Gas boiler fittings outnumbered heat pumps by 15...

April 10, 2025

Household Confidence Peaks to Three-Year High Amid Economic...

May 24, 2024

How to Run a Successful Personal Injury Law...

May 9, 2024

Cost of living crisis drives solar panel sales...

September 14, 2022

Hospitality firms plead for energy bill support to...

August 16, 2022

Tesla’s daily deliveries near 5,000 in 2024 as...

February 4, 2025

Victoria Beckham injects £6.9m into fashion empire after...

August 31, 2024

Scrapping inheritance tax would cost £15bn a year...

September 27, 2023

How to Stay Protected When Playing Online

July 5, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved