“The UK labour market is running on idle, with employers still limiting recruitment and pay awards in response to surging cost pressures and pre-Budget policy uncertainty.
“While weak wage growth should reassure rate-setters that the Iran-driven energy shock is not yet fuelling a broader inflation spiral, it also means the cost-of-living squeeze persists, increasing pressure on the Chancellor to act in next week’s Budget.
“The continued fall in vacancies is a flashing red warning light for the labour market, suggesting that a damaging side effect of this year’s AI-fuelled economic growth has been weaker hiring demand, compounded by elevated employment costs.
"The UK jobs market is facing a tougher end to the year with unemployment likely climbing back above 5% as the financial squeeze from rising energy costs and greater automation restrains hiring, particularly if the Budget brings further tax hikes.
“These figures likely seal the deal for a November rate rise, by suggesting that current labour market conditions are not weak enough to bring inflation under control, particularly given the economy’s greater-than-expected resilience.”
ENDS
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