Cracks in UK labour market grow as demand for staff fades – REC

FILE PHOTO: People walk through the Canary Wharf financial district of London, Britain, December 7, 2018. REUTERS/Simon Dawson

LONDON (Reuters) – British employers’ demand for staff grew in October at the slowest rate in almost eight years, a survey showed on Friday, underlining suspicions at the Bank of England that the labour market may be losing its strength.

A monthly index of jobs vacancies from the Recruitment and Employment Confederation and accountants KPMG fell to 51.7 from 52.6 in September, its lowest level since January 2012.

On Thursday, two of the BoE’s nine interest-rate setters unexpectedly voted to cut interest rates, citing signs that the labour market – the bright spot of Britain’s economy since the Brexit vote – may now be on the turn.

Friday’s REC report – which is monitored by the BoE – showed permanent job placements fell for an eighth month running and at a faster rate


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