The jobs market isn’t the only part of the economy slowing. Consumers are cutting spending in stores as high inflation and cost of living strain their budgets.
BDO High Street Sales Tracker Shows that retail sales grew at the lowest rate since February 2021, with the same sales in June increasing by 8.4% from a year earlier.
The 8.8% drop in homeware sales suggests consumers are postponing big purchases.
Lifestyle sales through online channels fell for the eighth consecutive month, as consumers cut their discretionary spending in the sector (which has fueled its lockdown).
Sophie MichaelHead of Retail and Wholesale bdoSays retailers face a related approach:
With consumer confidence at historically low levels, real wages hitting 20-year lows and interest rates set to rise further, there are some signs of encouragement for retailers.
Monitored by all four English regions KPMG and REC Permanent job placements saw a slowdown, with the north of England seeing only a partial increase.
London June saw sharpest growth in temporary jobs, while softest expansion was recorded midlands,
Starting salary continued to climb last month, UK Jobs Report from KPMG and REC reveals.
A lack of skilled candidates forced firms to raise their starting salaries – good news for workers looking for help with their cost of living.
payment pressure did Though marginally modest, wage inflation eased to a ten-month low with the start. This could ease the Bank of England’s worry of a break in the wage-price spiral.
The report says:
The ongoing imbalance between the supply and demand of workers further increased the starting wage rates during June.
Although sharp and well above the series average, the rate of starting wage inflation softened to the softest since August 2021, while temporary wage growth fell to a 12-month low.
Good morning, and welcome to our rolling coverage of business, the world economy, financial markets and the cost of living crisis.
Britain’s job market is losing steam, in a sign of the challenge facing the next government to bolster the struggling economy.
British employers slowed their recruitment through recruitment agencies again in June, with vacancies increasing at the weakest rate in a year.
According to the UK report on jobs, the slowdown is due to rising economic uncertainty, rising costs and a shortage of candidates. KPMG And this Relection Commission (Recruitment and Employment Federation).
The survey shows that both permanent staff appointments and temporary positions expanded at the softest rates for 16 months in June, as the labor market lost some strength.
Recruiters also reported another steep drop in overall candidate availability.
This is partly due to the decline in foreign candidates…. and because of the reluctance to switch jobs in the current environment, the so-called great resignation is futile.
Recruitment consultants often attributed low candidate numbers to a generally low unemployment rate, low foreign workers, strong demand for staff, and hesitation to change roles in an increasingly uncertain economic environment.
Report After the recession in May…
….and shows that we are on the cusp of a “post-pandemic recruitment spree”, as nilo carberrychief executive officer of rec, telling:
That pace of growth was always going to be temporary – the big question now is how inflation affects wages and consumer demand over the course of the rest of the year. Whether we will see the market close to normal levels or bearish is unpredictable at the moment.
“Part of the reason for market unpredictability is a slowing economy with severe labor and skill shortages. These are already proving to be a stumbling block to the growth of many firms. The government should think about how to ensure that All of its departments enable greater participation in the labor market and encourage business investment funds to help address it.
still coming today
After recovering on Thursday, the pound is hovering around $1.20 as the city waits to see who will emerge to succeed Boris Johnson as prime minister (a process that could take a few months). .
The paralysis may have followed yesterday’s dramatic resignation announcement, with Johnson promising no major policy, tax decisions or other changes of direction during his tenure.
Daniele AntonucciChief Economist and Macro Strategist Panchak Private Bank, They say:
Elections for the Conservative leadership are likely to begin within a few days. While his resignation could add to the uncertainty in the near future, the market reaction so far has been muted.
Looking ahead (following the current loss of growth momentum), the UK economy and its financial markets could perhaps benefit from greater certainty.
Elsewhere, Britain’s competition watchdog, the competition And Market authorityThe fuel retail market should release its report today, following a request from Business Secretary Quasi Quarteng.
The latest US jobs report, June’s non-farm payrolls, is expected to show that job creation slowed last month.
Economists predict the NFP will rise to 268k, compared to 390k US jobs created in May. A weaker reading could raise concerns about a potential US recession.
European stock markets were bullish yesterday, but today they are on the path of a weak open.
- Morning: CMA expected to release report on UK motor fuel market
- 9am BST: Italian industrial production for June
- 12.55 pm: ECB President Christine Lagarde attends a session at the Les Rencontres Economics event in Aix-en-Provence, Frank
- 1.30 a.m. BST: US non-farm payroll jobs report for June