Job vacancies in the UK have plummeted at the fastest rate since 2021, as employers hit the brakes on hiring amidst ongoing economic uncertainty. According to a recent survey by KPMG and the Recruitment and Employment Confederation (REC), demand for UK workers took a sharp nosedive last month, with the number of permanent job opportunities dropping at the quickest pace in over three years.
This latest development in the job market comes as a blow to job seekers, as the number of temporary job vacancies also saw a slight decline for the first time since August 2020. The report highlighted recruitment freezes, delays in hiring decisions, and fewer job vacancies as key factors contributing to the weakening job market.
The continuous decline in placements for permanent jobs across the UK for the 17th consecutive month has put pressure on the Bank of England to consider lowering interest rates sooner rather than later. The Bank had raised borrowing costs 14 times in a row until August, and has maintained rates at 5.25pc ever since.
The impact of this cooling job market is not limited to the UK, as Asian stocks fell after Japanese shares took a hit amidst speculation that the nation’s central bank may raise interest rates. The yen strengthened against the US dollar, leading to declines in Japanese equities, while Chinese equities saw a boost following the first rise in consumer prices since August.
With economic uncertainties looming and job vacancies on the decline, the job market landscape remains challenging for both employers and job seekers alike. Stay tuned for more updates on this developing story.
