Job’s list falls for the second month as budget and employment laws worry curb hiring
New job postings fell for the second month in a row in November, adding to the signs that workers are looking for cool as businesses are struggling and proposed.
According to the latest survey from the employment and employment Confederation (Rec), new job postings fell by 14.1 percent in October between 11.2 percent.
The slowdown is evident as employment tends to accelerate in sectors such as retail and hospitality at Christmas. The Rec said the drop suggests many employers are choosing to temporarily hire ahead of the Chancellor’s budget on November 26, and we are also waiting for clarification from the Government on Employment Rights.
Although the bill was softened at the end of the month, it remains frustrated in the House of Lords, where peers called for a cap on paying compensation in cases of unfair dismissal, the point of many employers.
Neil Carberry, the Act’s Chief Executive, said that while the budget was an unfavorable business, the outcome was less damaging than many had feared.
“While the budget was not easy for simple companies, the overall picture was much bolder in many areas than feared,” he said. “We can hope that this, along with the more toned down government employment rights legislation last month, will help get the job market back on track.”
The fall in vacancies is the latest sign that budget projections are weighing on economic confidence. Official statistics released last month showed the economy contracted by 0.1 percent in October, and the Office of National Statistics noted confidence in monetary policy, hiring decisions and investment decisions.
Despite the recent decrease, the most stressed is that the total vacancies remain at healthy levels, with roles around 1.46 million available in the economy. Other fields record month-over-month gains, including theme park advertising executives, stock control assistants and public relations directors.
However, sales and hospitality, two sectors already under pressure from rising costs, saw a sharp fall in active job postings, down 14.1 percent and 14.4 percent respectively. Both industries have been among the hardest hit by the increase in employers’ National Insurances introduced in April.
More broadly, the number of job vacancies has been in a reversed position for around two years as the post-pandemic labor market gradually cools down. The Bank of England releases vacancy data, particularly the unemployment rate, as part of its assessment of inflationary pressures and the strength of the labor market.
That ratio has risen sharply, from 1.8 people without work per vessel last year to 2.5 in July, signaling a loosening job market. Job’s list is widely viewed as a forward-looking indicator, reflecting employers’ confidence in future demand.
Attention will now turn to the latest official employment and wage growth figures, which will be published on Tuesday, covering the three months to October. The data will be closely watched by the Bank of England’s Monetary Policy Committee ahead of a decision on interest rates later in the week.
Economists expect the unemployment rate to rise from 5 percent to 5.1 percent, the highest rate since January 2021, and the UK job market slump to continue to lose momentum.
