Surveys on UK employment reveal new signs of labor market slowdown

The UK labor market is showing signs of slowing down, according to surveys conducted by the analytics firm Brightmine. Wage growth remains below inflation levels, and the number of job vacancies, particularly graduate-level, is contracting.

Pay increases in the private sector were at 3% over the three months to the end of May, compared to an inflation rate of 3.4%. Nearly 15% of companies reported even smaller wage raises of 2.5%, Brightmine stated.

Data from recruitment platform Indeed showed a 5% decline in job openings in the UK by mid-June compared to the end of March. Additionally, this figure was 21% lower than pre-pandemic levels.

The share of graduate-level vacancies reached its lowest since 2018, with the most significant drops occurring in human resources, accounting, and marketing. Indeed emphasized that these sectors are typically the most vulnerable to economic slowdowns.

The Bank of England is monitoring labor market indicators in the context of inflationary risks while considering the possibility of further interest rate cutting, Reuters reports.