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\t\tA Bank of England survey has pointed to a collapse in business employment.\t<\/p>\n
British businesses cut jobs at the fastest rate since the pandemic in the run-up to Rachel Reeves\u2019 Autumn Budget.<\/p>\n
A closely-watched survey<\/a> from the Bank of England, which quizzes finance directors on their staffing levels, showed employment in the private sector fell by 1.8 per cent in November \u2013 the steepest monthly decline since July 2021.<\/p>\n The finance bosses also said they expect to cut headcount<\/a> by around 0.7 per cent on average over the next year, marking the most significant decline since October 2020.<\/p>\n It came after months of back-and-forth briefing, which led to carnage in markets and had businesses on the back foot, riddled with uncertainty.\u00a0<\/p>\n Rob Wood, chief UK economist at Pantheon Macroeconomics, said the \u201cchaotic pre-Budget tax hike speculation\u201d led to \u201ccollapsing job growth\u201d.<\/p>\n The latest set of key survey data will tip the Bank into cutting interest rates by another 25 basis points later this month, Wood added.\u00a0<\/p>\n \u201cSharply weaker employment gains nail a December rate cut,\u201d he said.\u00a0<\/p>\n \u201cInflation or official labour market data would have to surprise hugely to stop the MPC reducing rates<\/a> in December now.\u00a0<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tManufacturing output plummets at fastest pace since pandemic<\/a><\/p>\n \u201cBut there are clearer signs that structural changes in the labour market are supporting pay, which will have to keep the Monetary Policy Committee (MPC) cautious.\u201d<\/p>\n Bank of England wary about inflation<\/p>\n Elevated inflation expectations were a key risk highlighted in the Bank of England\u2019s Decision Makers Panel survey.<\/p>\n