The report by the Recruitment & Employment Confederation showed companies are starting to impose hiring freezes because of pessimism about the outlook, and employees are deciding “stay put” rather than apply for other jobs.
Candidates remained in short supply, however, and firms needing to fill positions were forced to pay up. The rate of starting-salary inflation moderated only slightly in September as workers demanded to be compensated for the soaring cost of living. The tightness of the labour market is a key concern for the Bank of England, which has raised interest rates seven times since December in an effort to prevent a wage-price spiral.
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