UK Jobs Crisis? British Job Market Faces Sharp Slowdown as Firms Cut Hiring and Pay Hikes

In February, Britain’s job market continued to weaken with slower hiring and the weakest wage growth in four years causing doubt about economic stagnation. According to a survey by the Recruitment and Employment Confederation (REC) starting salaries for permanent roles grew at their slowest pace since February 2021. 

Permanent job appointments fell for the 29th month in a row but the drop was less severe than in January. Experts believe easing inflation and interest rate might give businesses some relief but still firms are cautious. 

The report also indicated that with a large supply of candidates entering the market, there are fewer vacancies. The number of vacancies had fallen for the 16th consecutive month, a reflection of weakened employer confidence. 

According to the Bank of England, private-sector wage growth is likely to slow further even while final pay settlements have already fallen back to 3.5%. The UK minimum wage is set to increase in April while inflation is expected to reach 3.7% later this year. It remains uncertain whether the job market will stabilize or continue its descent. 

Dharshini RDA

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