By Suban Abdulla<\/p>\n
LONDON (Reuters) -Britain’s labour market is showing more signs of cooling and businesses remain negative about their prospects in the coming months, according to surveys published on Monday.<\/p>\n
Job search website Adzuna said online job adverts fell by 1.3% in the 12 months to August – the first such drop since February – and by 2.1% in month-on-month terms.<\/p>\n
However, vacancies remained higher than in January, typically a peak hiring month, which suggested the jobs market is “cooling, not collapsing,” Adzuna said.<\/p>\n
Advertised salaries rose 0.2% in monthly terms in August to 42,367 pounds ($56,589.60), and by 8.9% from a year earlier, underscoring the dilemma facing the Bank of England which is worried about a hiring slowdown but also inflation pressures.<\/p>\n
“Salary growth remains one of the few constants, still outpacing inflation, but hiring appetite is uneven and increasingly shaped by a mix of sector-specific swings and the growing role of AI within the UK labour market,” Andrew Hunter, co-founder of Adzuna, said.<\/p>\n
The BoE held interest rates this month and investors are fully pricing only one 25 basis-point reduction in borrowing costs by the end of 2026 as the central bank worries about inflation pressures from the jobs market.<\/p>\n
Employers have reduced their hiring after an increase in April in their social security contributions, announced in finance minister Rachel Reeves’ first budget last October, and a rise in the minimum wage.<\/p>\n
Businesses are concerned about further tax rises in Reeves’ next fiscal statement on November 26.<\/p>\n
Official data published earlier this month showed vacancies rose in the three months to August and wage growth cooled slightly in the May-to-July period.<\/p>\n
A survey published on Monday by the Confederation of British Industry showed British companies expect a drop in activity over the coming three months, partly reflecting the impact of the higher social security contributions for employers.<\/p>\n
The CBI said expectations measures in its surveys of manufacturers, retailers and other services industries fell to -20 for the three months to December. The CBI’s gauge of business activity was -32 in the three months to September.<\/p>\n
“A persistent climate of global economic uncertainty is further hampering decision-making,” CBI chief deputy economist Alpesh Paleja said.<\/p>\n
“This is now accompanied by renewed nervousness around the November budget, with businesses concerned about being asked to again shoulder the burden of fixing the public finances.”<\/p>\n","protected":false},"excerpt":{"rendered":"By Suban Abdulla LONDON (Reuters) -Britain’s labour market is showing more signs of cooling and businesses remain negative…\n","protected":false},"author":2,"featured_media":476629,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[158443,51,1700,37863,21528,41062,16,15],"class_list":{"0":"post-476628","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-adzuna","9":"tag-business","10":"tag-economy","11":"tag-inflation-pressures","12":"tag-labour-market","13":"tag-social-security-contributions","14":"tag-uk","15":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115323501587703989","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/476628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=476628"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/476628\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/476629"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=476628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=476628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=476628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}