The bank of England warned that the UK will fall into recession in the final quarter of this year after a slow down of the hiring spree that followed the Pandemic. The bank raised interest rates from 1.25% to 1.75% in a bid to curb soaring prices.
The jobs report by KPMG and the Recruitment and Employment Confederation suggested rising operating costs and uncertainty about the UK's economic outlook are leading some firms to put the brakes on recruitment, at least for permanent positions.
It is still a good time to be a jobseeker - the number of vacancies has continued to grow. The fastest growth in vacancies was for temporary positions in the hospitality sector.
The outlook was painted by the Bank of England. Michael Hewson, chief market analyst at CMC Markets, said that one might wonder why anyone 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 the economy will shrink in the last 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.
According to Jeevun Sandher, an economist at Kings College London, those who are willing to work are generally working. That is great news, but he said that it doesn't mean that you'll 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.