Job vacancies fall quicker in UK than elsewhere, Certainly says

By David Milliken

LONDON (Reuters) – Job vacancies have dried up quicker within the United Kingdom (TADAWUL:4280) than in different comparable international locations over the previous 12 months, recruitment platform Certainly mentioned on Tuesday, including to indicators of a lack of momentum within the British economic system within the second half of this 12 months.

Certainly’s knowledge confirmed that as of Nov. 29 there have been 23% fewer jobs marketed on its platform in Britain in contrast with a 12 months earlier – a sharper decline than the 14% drop proven in official knowledge which covers the August to October interval.

Job vacancies have been 12% decrease than earlier than the COVID-19 pandemic.

“The steadiness of energy has definitely swung in direction of employers because the labour market has softened, as evidenced by the autumn in job postings, decline in signing bonuses, easing wage progress and rising zero hours contract postings,” Certainly economist Jack Kennedy mentioned.

Whereas France did solely barely higher with a 22% annual decline, different comparable international locations together with the USA, Germany, Eire, Canada and Australia had falls in a variety of 5% to fifteen%.

Certainly’s knowledge reveals a gradual fall in vacancies via 2024 however companies’ considerations about hiring have develop into sharper since finance minister Rachel Reeves introduced a 25 billion pound ($32 billion) rise in employer payroll taxes in her Oct. 30 price range.

“Employers will doubtless proceed with warning relating to hiring in 2025,” Certainly mentioned.

On Monday the Recruitment and Employment Confederation, which represents recruitment companies, mentioned demand for employees in Britain collapsed final month after the brand new Labour authorities’s first price range.

Tuesday’s figures confirmed that marketed beginning salaries in Britain have been 6.7% larger than a 12 months earlier – a quicker rise than the 4.8% proven for common earnings excluding bonuses in official knowledge for the third quarter.

Excessive wage progress has been a key motive behind the Financial institution of England’s choice to chop rates of interest extra slowly than the European Central Financial institution of the U.S. Federal Reserve.

Certainly mentioned pay progress was quickest in low-paid roles – the place pay in October was up 7.6% 12 months on 12 months, reflecting a better minimal wage – whereas high-wage jobs had a 6.0% rise.

In much less excellent news for low earners, zero-hours contracts – which supply no minimal hours for employees, and which the federal government has pledged to curb – rose to 1.9% of job postings, up from 1.1% in April 2022.

Certainly, which is owned by Japan’s Recruit Holdings (TYO:6098), says it operates the world’s most visited job website, with 580 million job seeker profiles throughout greater than 60 international locations.

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