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2w ago

UK Sees Sharpest Rise in Jobseekers Since 2020 as Hiring Declines Persist

A surge in redundancies and reduced vacancies highlight the ongoing strain on Britain's labor market, compounded by rising employment costs and global trade uncertainties.

A restaurant advertises for workers in Brighton, Britain, August 15, 2023. REUTERS/Toby Melville/File Photo
A clothing retail shop advertises for workers in Brighton, Britain, August 15, 2023. REUTERS/Toby Melville/File Photo
Better supply of labour and subdued demand for employees have continued to push down on wage growth

Overview

  • The number of jobseekers in the UK rose at its fastest rate since December 2020 in March, driven by layoffs and fewer job openings.
  • Permanent job placements have fallen consistently for two and a half years, with vacancies declining across all sectors, including healthcare and care jobs.
  • New government measures, including a 6.7% increase in the minimum wage and higher payroll taxes effective April 1, are raising employment costs for businesses.
  • Global trade uncertainties, including recent US tariff actions, are further destabilizing the UK labor market and dampening business confidence.
  • Key analysts warn that the labor market downturn is unlikely to improve soon, as economic uncertainty continues to weigh on hiring and growth prospects.