UK Job Market Records Its Bleakest Month in Over a Decade

September 09, 2024
Copyright Alberto Pezzali/Copyright 2020 The AP.

August saw a decline in the strength of the UK job market for the fourteenth consecutive month, according to accounting firm BDO.

The score of 95.89 represented the lowest since January 2013. Since growth is indicated by a number over 95, the number was barely positive.

The growth came from a rise in new contracts and a late surge in summer tourism which meant businesses and consumers allowed themselves to spend a little more freely than they might otherwise have done.

The fall in vacancies indicates that higher interest rates are having an effect and experts say the data will be adding to pressure for the Bank of England (BoE) to cut interest rates.

The Monetary Policy Committee (MPC), the panel which makes the decision on the interest rate, will be taking this data into account when it meets later this month.

The number of jobs available has been falling as interest rates rise and economic conditions appear to worsen.

There was also a rise in people claiming unemployment-related benefits last month, according to the Office for National Statistics. The level is now at its highest level since December 2021, the ONS revealed.

The BDO index is a "poll of polls" which consists of data from the UK's most influential business surveys. It surveys more than 4,000 companies.