Demand for UK workers drops significantly after government’s budget

Info from

Recruitment and Employment Confederation trade body and
accountants KPMG survey comes via Reuters:

• Demand for workers in Britain fell sharply after the Labour government’s first budget.

• REC/KPMG’s staff demand index dropping to 43.9 in November, the lowest since August 2020.

• Permanent staff placements saw the fastest decline since August 2023, while temporary hiring eased slightly.

• REC criticized the Employment Rights Bill as “undercooked” and warned of its potential negative effects.

Comments from the report:

• “It should be a surprise to no-one that firms took the time
  to re-assess their hiring needs in November after a tough budget
  for employers,”
• “The real question now is whether businesses will return
  to
  the market as they go into next year with greater certainty
  about the path ahead.”

—

At the margin this sort of data will hurry along Bank of England rate cuts lest the labour market takes a hit.

This article was written by Eamonn Sheridan at www.forexlive.com.