LONDON – British employers slowed their hiring via recruitment agencies by the most in 17 months in July as they worried increasingly about the outlook for the economy, a survey showed on Friday.
With the Bank of England now warning of a recession between late 2022 and early 2023, hiring of temporary workers outgrew permanent staff appointments, the Recruitment and Employment Confederation (REC) said.
Pay growth, while still strong by historical standards, was the least marked for 11 months for permanent staff and was the slowest in just over a year for temporary workers.
Growth in vacancies fell to a 16-month low and the supply of candidates to fill jobs – which has been an acute problem for employers – worsened by the least since April 2021.
The BoE said on Thursday, as it raised interest rates by the most since 1995, that it saw signs of inflationary pressure in the labor market despite its bleak forecasts for the economy. William Schomberg