UK vacancies fall in early signs Labor market could weaken


Vacancies in the UK have fallen for the first time since August 2020, an early sign that the country’s scorching job market may be starting to cool.

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(Bloomberg) —

Vacancies in the UK have fallen for the first time since August 2020, an early sign that the country’s scorching job market may be starting to cool.

The number of jobs employers are looking to fill fell by 19,800 to 1.27 million in the quarter ending July, the Office for National Statistics said on Tuesday. The economy added 160,000 jobs in the second quarter, 46% less than in the three months of May.

The figures are among the most forward-looking measures in the government’s monthly jobs report and add to evidence that the economy could slow under the weight of a cost-of-living crisis and inflation at an all-time high level for 40 years.

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The pressure on households was highlighted by figures showing excluding bonuses and inflation-adjusted wages fell 3% in the three months to June, the biggest drop since records began in 2001.

The figures suggest labor market tensions are easing as workers struggle to cope with soaring energy and food bills.

Bank of England policymakers, led by Governor Andrew Bailey, fear the labor market is still too hot and have announced plans to continue raising interest rates to prevent runaway inflation from taking hold. causes a spiral of wages and prices.

Longer term, the outlook is less bright, with the BOE predicting that unemployment will hit over 6% as the cost of living crisis weighs on the economy.

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