UK jobs market softens again in December - REC

The monthly index of vacancies, compiled by the Recruitment and Employment Confederation trade body and accountants KPMG, fell last month to 53.0, its lowest since February 2021 and down from 54.1 in November.Starting salaries for permanent staff and pay rates for temporary workers grew at the slowest rate since April 2021, similar to their average level in the couple of years prior to the COVID-19 pandemic.

"Recruiters tell us that this was enhanced by firms pushing hiring activity back into January in the face of high inflation and economic uncertainty." But the BoE is worried that double-digit inflation will become engrained in the public psychology and it is likely to raise interest rates again next month.

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