The Strategist

UK labor market vacancy index falls to 53.0 in December

01/10/2023 - 09:51

The U.K. labor market continued to deteriorate in December, according to the results of the employment agency poll that was issued on Tuesday. This suggests that long-term inflationary pressures may also decrease.

The monthly jobs index, calculated by the Recruitment and Employment Confederation (REC) and KPMG, dropped from 54.1 in November to 53.0 in December, its lowest level since February 2021.

The Bank of England kept an eye on the poll results, which also revealed an easing of wage pressures.

Primary earnings for permanent employees and temporary employee rates of pay increased at the slowest rate since April 2021, which means that growth was about equal to the average of the two years prior to the pandemic.

According to REC CEO Neil Carberry, "the slowdown in permanent job growth in December is typical, but this time it is linked with a larger trend of a weakening permanent worker market."

He continued, "According to staffing firms, this is as a result of businesses delaying recruiting for January due to rising inflation and economic uncertainties."