UK jobs surveys send fresh cool-down signals

Britain’s labour market is showing further slowdown signs, according to surveys published on Wednesday which pointed to below-inflation pay growth and a fall in job vacancies, especially for graduate-level jobs.

Most pay settlements offered by private sector employers held at 3 per cent in the three months to the end of May – lower than the most recent inflation reading of 3.4 per cent – and almost 15 per cent of firms gave smaller raises of 2.5 per cent, data firm Brightmine said.

“Private sector employers are holding steady at 3 per cent, taking a more cautious approach as, they wait for firmer economic signals,” Sheila Attwood, data lead at Brightmine, said.

Separate figures from recruitment platform Indeed showed a latest fall in job vacancies which were down 5 per cent in mid-June from their level at the end of March.

Vacancies were 21 per cent below their pre-pandemic level, leaving the UK as the only advanced economy tracked by Indeed with job openings lower than before the coronavirus pandemic.

The share of graduate-level posts advertised was its lowest since at least 2018 with the biggest drops in human resources, accountancy and marketing, typically areas most vulnerable to a slowdown in the economy.

Indeed said the fall could also be linked to the impact of artificial intelligence on some job roles.

However, the weakening of the overall jobs market did not represent a slump, despite warnings from employers about the impact of April’s increase in social security contributions ordered by finance minister Rachel Reeves.

Retail postings were down 2 per cent since April, while in food service they were 10 per cent lower. Hospitality and tourism job postings were down 11 per cent, Indeed said.

The Bank of England is watching the jobs market for its inflationary pressures as it considers when to cut interest rates again. Governor Andrew Bailey on Tuesday pointed to a slowdown in pay growth.