UK employers cut hiring driven by political turmoil

A survey showed that British employers reduced hiring of permanent staff through recruiting companies. This is due to the country's political uncertainty, strengthening market fears about economic recession. 

Job vacancies in the UK have fallen for the first time since February 2021, the Confederation for Employment and Labor (REC) said on Thursday. These measures were introduced following the Bank of England's warning about the most protracted recession in the last century. 

The above-mentioned process affected temporary workers being hired less than expected. Concurrently, there has been the lowest wage growth for new full-time workers over the past year and a half. 

The changes came in the context of political chaos in the UK. Former Prime Minister Liz Truss’ government announced a series of tax breaks not funded by the U.K. authorities. That sparked a sell-off in the bond market and triggered Truss' resignation last month.