Signs of Slowdown in the Labour Market

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Economy News

Recent economic data suggests a potential slowdown in the labour market, with falls in job vacancies and hiring, a slight uptick in the unemployment rate, and job losses in certain sectors. Some employers may welcome this slowdown amid skills shortages in a tight labour market.

The country has enjoyed an unprecedented period of jobs growth over the last few years and the unemployment rate remains at near historic lows, but recent economic data could be pointing to a slowdown in the labour market.

"Recent consumer confidence indicators and vacancy levels have been reflecting some of this uncertainty at the start of this year, with people showing some concern about their employment prospects and vacancy numbers slowing," Mr Webb said. "We expect to see job postings continue to gradually recede to levels similar to those prevailing before the pandemic," said Jack Kennedy, senior economist at Indeed.

"In the pre-Covid era that would still have been a very strong year, but not quite as strong as the absolute record years that we've seen recently," Mr Brady said. "These rising costs have a negative knock-on effect, with a reduced number of firms planning to increase their headcount over the next twelve months."

"So if there is a little bit of that heat taken out of the labour market, that isn't necessarily a bad thing.

 

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