Jobs have disappeared faster in the UK than in other similar countries over the past year, with the second half of this year set to see the biggest drop in job openings due to weak business confidence, job platform Indeed said on Tuesday.
The dire state of the jobs market adds to the signs that Britain's economy is losing momentum under Sir Keir Starmer's newly elected left-wing Labor government, Reuters report.
Indeed data shows that as of November 29, the number of jobs posted on its platform in the UK was down 23% year-on-year, compared to the previous year, according to official data from August to October. This is a steeper decline than the 14% decline seen earlier in the year.
The number of job openings is down 12% compared to before the coronavirus pandemic, Reuters noted.
Indeed economist Jack Kennedy said: “As the labor market softens, as evidenced by fewer job openings, fewer signing bonuses, slower wage growth, and an increase in the number of zero-hours contracts, power relations are certainly changing.'' “It's leaning towards the employer.”
France only improved slightly with a 22 percent annual decline, while other comparable countries, including the United States, Germany, Ireland, Canada, and Australia, experienced declines ranging from 5 percent to 15 percent.
Indeed data shows a steady decline in vacancies until 2024, even as Chancellor of the Exchequer Rachel Reeves announced a £25bn ($32bn) increase in employer payroll tax in her Budget on October 30th. ), companies have become increasingly concerned about employment.
Indeed said: “Employers will remain cautious about hiring in 2025.”
The Recruitment and Employment Federation, which represents recruitment agencies, said on Monday that demand for workers in the UK had collapsed after last month's Budget.
This would further harm the left-wing Labor government's efforts to boost growth. guardian report Demand for talent fell at a “sharp and accelerated pace” last month, with the number of vacancies at the highest level since August 2020, according to the latest monthly outlook for the jobs market published by accountancy firm KPMG and the Employment and Employment Confederation (REC). This was a significant decrease.
November was the 13th month in a row that demand for talent fell, with a “particularly severe” decline in vacancies for permanent workers, the latest sign of further deterioration in the UK labor market.
John Holt, group chief executive at KPMG, said: “Firms will need to consider the prospect of increased staff costs following the Budget, which is contributing to an overall slowdown in recruitment.” Ta.
