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LONDON, Dec 8 (Reuters) – Britain’s labor market cooled significantly last month, with demand for staff and pay growth softening, and staff shortages becoming less acute, a survey showed on Thursday.
A monthly index of workforce demand from the Recruitment and Employment Confederation (REC) trade body and accountants KPMG fell to 54.1 in November from 56.7 in October, the lowest reading since February 2021.
Survey measures of starting pay and wage rates for permanent and temporary workers also fell to their lowest levels in nearly a year and a half. Recruitment of permanent staff declined for the second month in a row.
The survey, closely watched as a leading indicator of the labor market ahead of next week’s interest rate decision by the Bank of England, matched other signs the economy was slowing.
“This month’s data underscores that while employers are modestly more cautious in the face of economic uncertainty, this is not yet a major slowdown in hiring,” REC chief executive Neil Carberry said.
“A period of euphoria in the labor market is inevitable in this current economic environment, but demand is being supported by some key underlying factors, including labor shortages and technological change,” he added.
Last month BoE Governor Andrew Bailey said Britain’s “very tight” labor market was the main reason further interest rate rises were likely.
Reported by Andy Bruce; Editing by David Milliken
Our Standards: The Thomson Reuters Trust Principles.
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