Job postings fall in ‘summer slowdown’
Fewer jobs postings were made in July in signs that a “summer slowdown” will hit the UK economy and test Chancellor Rachel Reeves’ commitment to get more Brits into work.
Data provided by the Recruitment and Employment Confederation (REC) and analytics company Lightcast has shown that there was a 9.2 per cent decrease in the number of new job adverts last month compared to June.
New job postings were also considerably lower over the year, with an 11 per cent decline across the country highlighting bosses’ fears of extra taxes and red tape hitting businesses.
Overall job postings increased slightly on the month, suggesting businesses are taking their time in hiring new employees.
Job postings decline draws on fears
The data points to the continued impact of Rachel Reeves’ last Autumn Budget on businesses as company directors have blamed the deterioration in the jobs market on the Chancellor’s £20bn employment tax raid.
Research also suggested there were still around 1.5m jobs across the country based on analysis of “tens of thousands of job boards”.
Northern Ireland experienced the worst decline in new job postings with a decline of around 40 per cent year-on-year.
Neil Carberry, REC chief executive, said there was “need for action” at this year’s Autumn Budget to remedy a malaise in the jobs market experienced over two years.
“Despite a long slowdown driven by uncertainty and rising costs, the British labour market is still creating lots of opportunities,” Carberry said.
“Recruiters tell us that firms entered the summer break with a little more positivity than they had earlier in the year, so there is some hope of a bounce once the summer slowdown is over.
“The fear of further costs, worries about the impact of the Employment Rights Bill and new tax rules are all on employers’ minds.
“If ministers want growth, they must deliver stability and backing for businesses, by moderating policy costs, reforming skills funding and putting the workforce at the heart of economic strategy.”
Keir Starmer thanked business chiefs for shouldering the tax burden at a conference in June but industry groups are now urging the government not to add further costs.
The Chancellor is widely expected to raise at least £20bn in taxes if she wishes to abide by her fiscal rules.
Some economists have told her to build a larger headroom to “build credibility” with bond markets.