The UKs job market took an unexpected hit as worker demand crashed to a four-year low after Rachel Reeves new budget rollout. The latest numbers from the Recruitment and Employment Confederation (REC) and KPMG show the staff-demand index fell to 43‚9 - a level not seen since the covid-era
Full-time job placements dropped faster than any time since late summer - while temp work slowdown got a bit better than oct (showing how businesses are dealing with new tax rules). Neil Carberry RECʼs boss points out: “its not shocking that companies needed time to think about hiring after such a tough budget“
- Only covid lockdowns
- The 08-09 money crash
- The post-9/11 period
showed worse numbers in the index history
A Bank of England check found that more than half of companies plan to cut jobs because of higher costs; while private-sector pay deals went down to 3‚9% in the aug-oct period. The CBI also dropped its growth forecast for next yr - though some experts say other budget parts might help growth
Jon Holt from KPMG UK sees some good news ahead: cheaper borrowing costs expected in 25 and government spending plans could make things better. Meanwhile Reeves says this budget is just a one-time fix for public money; promising business owners theyʼll get more stable tax rules to plan ahead