Sunday, December 22, 2024

UK jobs market sees worst month in more than a decade

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The strength of the UK’s jobs market fell for the 14th month in a row in August, according to accountant BDO.

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The reading of 95.89 was the lowest score since January 2013. Anything over 95 indicates growth so the figure was only just on the positive side.

The growth came from a rise in new contracts and a late surge in summer tourism which meant businesses and consumers allowed themselves to spend a little more freely than they might otherwise have done.

The fall in vacancies indicates that higher interest rates are having an effect and experts say the data will be adding to pressure for the Bank of England (BoE) to cut interest rates.

The Monetary Policy Committee (MPC), the panel which makes the decision on the interest rate, will be taking this data into account when it meets later this month.

The number of jobs available has been falling as interest rates rise and economic conditions appear to worsen.

There was also a rise in people claiming unemployment-related benefits last month, according to the Office for National Statistics. The level is now at its highest level since December 2021, the ONS revealed.

The BDO index is a “poll of polls” which consists of data from the UK’s most influential business surveys. It surveys more than 4,000 companies.

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