The Bank of England warned that the UK will fall into a recession in the final quarter of this year, as the slowdown of the hiring spree that followed the Pandemic came to an end. The bank raised interest rates from 1.25% to 1.75% in a bid to curb rising prices.
The jobs report by KPMG and the Recruitment and Employment Confederation shows rising operating costs and uncertainty over the UK's economic outlook is leading some firms to put the brakes on recruitment, at least for permanent positions.
The number of vacancies advertised has increased as a result of the good time to be a jobeeker. The fastest growth in vacancies was for temporary positions in the hospitality sector.
The Bank of England painted a picture of the outlook. Michael Hewson, chief market analyst at CMC Markets, said one might wonder why someone would consider switching jobs at all.
Consumer confidence is already at record lows and prices are poised to rise further, so business and consumers are likely to face further challenges. Let's see what the government has in mind to guide us through the winter months. The Bank of England said that the economy will shrink in the final three months of the year and keep shrinking until the end of 2023, signalling the longest downturn for the UK since the 2008 financial crisis.
Jeevun Sandher, economist at Kings College London said that those who are willing to work are generally working. That is great news, but he said that it does not mean you won't earn enough to escape poverty. Nearly 70% of adults in poverty lived in working households before the cost-of-living crisis. Half of us are cutting back on food, and that has gotten worse.