UK recruiters report sharpest rise in job seekers since Covid-19

[LONDON] The pool of candidates looking for a job in Britain grew the most since the pandemic, one of the clearest signs yet that the labour market is cooling amid cost pressures for firms at home and a worrying global outlook.

The Recruitment and Employment Confederation (REC) said on Friday (Apr 11) its gauge of staff availability rose in March at a pace last seen in December 2020. The increase was driven by a mix of layoffs and fewer job postings.

The survey findings – closely watched by the Bank of England (BOE) – reflect belt-tightening in preparation for the increases in payroll taxes and the minimum wage that took effect earlier this month. With Donald Trump’s global tariffs war now casting doubt over UK growth prospects, the jobs market could be set to weaken further.

“At a time when global uncertainty is peaking and businesses are assessing the impact of market volatility alongside rising employment costs, the latest data demonstrates how the economic reality continues to weigh heavily on the labour market,” said Jon Holt, group chief executive and UK senior partner at KPMG.

The REC survey adds to the case for the BOE to cut interest rates again next month, a move now widely expected by economists and investors in the wake of the turmoil on financial markets. However, policymakers such as Megan Greene have warned that wages are still growing too quickly to meet the 2 per cent inflation target sustainably.

That resilience was also captured by the REC survey. Growth in starting salaries picked up, albeit from historical low levels, and job postings declined at the softest pace since October, before Labour announced its plans to increase taxes. BLOOMBERG