The UK’s job market continues to show signs of weakness, experiencing a decline for the 14th consecutive month as of August, according to recent findings from BDO.
With a score of 95.89, the index has reached its lowest point since January 2013. A score above 95 indicates growth; thus, this figure barely remains in the positive territory.
The slight growth observed can be attributed to an increase in new contracts as well as a seasonal boost from summer tourism. As a result, both businesses and consumers felt more inclined to loosen their spending, which has had a somewhat positive impact.
However, the drop in job vacancies suggests that rising interest rates are starting to take a toll. Experts believe this data adds to the mounting pressure on the Bank of England (BoE) to consider lowering interest rates.
The Monetary Policy Committee (MPC), responsible for setting interest rates, will factor this information into their discussions when they convene later this month.
As economic conditions worsen along with climbing interest rates, the number of job opportunities has been declining.
Additionally, the Office for National Statistics reported a rise in individuals claiming unemployment benefits last month, marking the highest level since December 2021.
The BDO index, renowned for its reliability, compiles data from influential business surveys across the UK, drawing insights from over 4,000 companies.
Photo credit & article inspired by: Euronews
