LONDON, Oct 11 (Reuters) – British employers cut their job vacancies in September for the first time in more than two and a half years and reduced their hiring again, a recruiter industry body said on Wednesday, indicating that Labor market slowdown.
In a set of data that the Bank of England will use to decide whether it should resume raising interest rates in November or keep them on hold, a contraction in vacancies and demand for staff since February 2021 Represents the first decline, the Recruitment and Employment Confederation (REC) said.
However, the decline was modest and mostly in the public sector.
Similarly, permanent employee hiring declined over the year, but the decline was less severe than the sharp decline in August and less than the July cut.
REC chief executive Neil Carberry said the latest figures showed the decline in the jobs market was leveling off.
“It looks like a market that is approaching year-long recession lows,” Carberry said. “And the relative buoyancy of the private sector is likely to drive this more positive outlook.”
Samuel Toombs, economist at consultancy Pantheon Macroeconomics, said the survey suggests month-on-month growth in wages will slow later this year, making more BOE rate hikes less likely in the near term.
REC, which publishes the data with KPMG, said starting salaries had the smallest increase in two and a half years and there were reports of pressure on company budgets.
The BOE said last month that August’s REC data could indicate a slowdown in wage growth as it left interest rates on hold after 14 consecutive hikes.
Other measures of pay have also pointed to a reduction in pressure on employers to raise wages, but so far the main official measure of earnings growth for workers in Britain is running at a record high.
REC said spending on temporary workers increased for the first time since July 2020, following a decline in August.
It said companies in the hospitality, engineering, logistics and healthcare sectors continued to have very strong demand for employees.
Reporting by William Schomberg; Editing by Andrew Havens
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