The number of job vacancies in the UK has plummeted to its lowest point in over five years, with the latest stats showing a drop to 707,000, as smaller businesses tighten their belts on recruitment. Official figures from the Office for National Statistics (ONS) revealed that this decline occurred during the May-to-July period. Small firms are pointing fingers at rising labor and operating costs as the primary culprits behind their hiring slowdowns.
Ever since the onset of the Iran war, energy costs have surged. Companies are also feeling the squeeze from increases in National Insurance and minimum wage, making it tougher to keep staff on board. Earnings growth did see a slight uptick, but let’s not kid ourselves—private sector wages are growing at their slowest pace in nearly six years. Regular earnings, excluding bonuses, climbed at an annual pace of just 3.5% in the three months leading up to June. Meanwhile, public sector pay shot up by 6.1%, largely thanks to recent NHS pay awards, while private sector pay took a dip to 2.8%, as pointed out by Suren Thiru, chief economist at the Institute of Chartered Accountants in England and Wales.
The ONS described the labor market as “little changed overall,” with a glimmer of hope showing signs of progress due to adjustments in Universal Credit and increased spending aimed at helping individuals with health issues find work. But here’s the kicker: shadow chancellor Mel Stride mentioned that the Conservatives had plans to ease summer job access for young folks. They’re proposing to offer more flexibility around breaks and working patterns while simplifying evening work restrictions during weekends and outside term-time.
Take Jasmine Walker, for instance. This 19-year-old has been on the job hunt, applying “anywhere and everywhere.” Frustration is creeping in as she feels like she’s getting nowhere with her applications. She’s decided to head back to college this September to pursue a level three sports diploma, hoping it’ll boost her job prospects. “It’s a bit frustrating because you don’t get anywhere with that,” she said. Patrick Milnes from the BCC noted that many will have to reassess their recruitment plans as the situation evolves.
On the other hand, the TUC union has been vocal about the “exploitative” nature of zero-hours contracts, which they say have become “endemic.” TUC general secretary Paul Nowak emphasized the need to get young people into meaningful work. Analysts have chimed in too, suggesting that the latest ONS data shows little in terms of pay growth that might trigger inflationary pressures, hinting that the Bank of England is unlikely to raise interest rates in their September meeting.
Figures released last week pointed to a “relatively robust” UK economy, but experts are anticipating a slowdown in growth as we move into the latter half of the year. And just last week, it came to light that internal forecasts shared with the new prime minister and chancellor indicated UK growth could stall at a mere 0.3% by 2027 if the Iran war continues to disrupt shipping through the Strait of Hormuz. So, if you’re on the lookout for summer work, hang in there and keep your eyes peeled…
Kaynak: Orijinal Haber