Vacancies fall at fastest pace since 2020, putting pressure on Bank to cut rates

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  • Vacancies decreased 6.95% to 929,138 in December
  • Biggest drop since June 2020
  • Preliminary data suggests a further drop of between 6 and 8% in January

Job vacancies are falling at the fastest rate since the height of the pandemic, according to figures which will increase pressure on the Bank of England to cut interest rates soon.

Vacancies fell 6.95 percent to 929,138 last month, the biggest drop since June 2020, according to job search engine Adzuna.

And this month promises to be just as difficult, with early data suggesting a further decline of between 6 and 8 percent in January, according to the report.

These figures come ahead of the Bank of England’s interest rate decision on Thursday.

Rates are expected to remain unchanged at 5.25 percent, but signs of a tightening jobs market – as inflation falls more sharply than expected – will fuel calls for an easing of borrowing costs.

Competition: Vacancies fell 6.95 percent to 929,138 last month, the biggest drop since June 2020

Competition: Vacancies fell 6.95 percent to 929,138 last month, the biggest drop since June 2020

Adzuna said competition for jobs was the highest since September 2021, with 1.68 job seekers per vacancy.

Retail, manufacturing and hospitality saw the biggest declines in advertised positions, with teaching being the only one to increase.

Average advertised salaries continue to rise – up 0.96% to £37,577. Andrew Hunter, co-founder of Adzuna, said: “December data (shows) roles down almost 7 percent compared to November and almost 13 percent compared to the same period in 2022 Jobs are expected to fall further before starting to recover. .’

Tony Wilson, director of the Institute for Employment Studies, a consultancy, said: “Hiring is slowing, but this data suggests there has been little or no rebound in activity in the new year .

“Normally, we would expect a strong recovery in recruitment after Christmas.”

Separate new figures from the Confederation of British Industry (CBI) show private sector activity fell in the three months to January – and has remained flat or falling for a year and a half. Alpesh Paleja, chief economist at the CBI, said: “It appears that the economy is, at best, destined to remain stagnant in the short term. »



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