UK hiring slows again in May but downturn might be easing, recruiters say
[LONDON] British businesses hired staff at a slower pace in May as demand for staff fell for an eighth consecutive month, but there were some signs that the downturn was beginning to bottom out, a survey of recruiters showed on Friday.
The Recruitment and Employment Confederation said its members reported a further big fall in hiring for permanent jobs but spending on temporary staff fell by the least in six months.
'More encouraging signs in temp billings, vacancies and stabilising private-sector demand offer a measure of optimism as we head into the second half of the year,' REC chief executive Neil Carberry said.
Britain's labour market is facing headwinds including weak economic growth, a sharp rise in employers' social security contributions and a near-7 per cent rise in the minimum wage which took effect in April.
Tax data showed that the number of employees on company payrolls dropped by the most in five years last month, while the unemployment rate for the three months to April rose to its highest in nearly four years at 4.6 per cent.
REC said its members reported that the number of candidates seeking work had increased at the fastest pace since December 2020 last month 'amid reports of redundancies and fewer job opportunities'.
The Bank of England - which is expected to keep interest rates on hold next week - has said that developments in the labour market will be key to determining how fast it lowers interest rates.
Private-sector regular pay growth slowed to 5.1 per cent in the three months to April from 5.5 per cent in the first quarter of 2025 but still remains well above levels the BoE views as consistent with getting inflation back to its 2 per cent target.
REC said starting salaries for permanent staff had picked up in May to rise at the quickest pace since August 2024 and that wages for temporary staff rose by the most in a year. But - unlike the official wage data - REC said its measures of pay growth remained below their long-run averages. REUTERS
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
7 hours ago
- Straits Times
Britain moving jets to Middle East to support regional security, PM Starmer says
FILE PHOTO: British Prime Minister Keir Starmer speaks during a joint press conference with U.S. President Donald Trump in the East Room at the White House, February 27, 2025 in Washington, D.C., U.S. Carl Court/Pool via REUTERS/File Photo LONDON - Britain is moving additional military assets, including fighter jets, to the Middle East to provide support across the region, Prime Minister Keir Starmer told reporters on Saturday as he was en route to a Group of Seven meeting in Canada. Iran and Israel traded missiles and airstrikes on Saturday, the day after Israel launched an air offensive against its old enemy, killing commanders and scientists and bombing nuclear sites in a stated bid to stop it building an atomic weapon. "We are moving assets to the region, including jets, and that is for contingency support in the region," Starmer said. Britain already has fighter jets in the Middle East as part of an operation to counter threats in Iraq and Syria. Crews began deployment preparations on Friday morning, when it was clear the situation in the region was deteriorating, a spokesperson for the prime minister said. Further refuelling aircraft from British bases have been deployed, and additional fighter jets will be sent, the spokesperson added. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
2 days ago
- Straits Times
Liverpool agree club-record deal to sign Florian Wirtz from Bayer Leverkusen
Germany's Florian Wirtz in action during the Nations League semi-final against Portugal on June 4. PHOTO: AFP LONDON – Liverpool have agreed a club-record deal worth up to £116 million (S$201.6 million) to sign Florian Wirtz from Bayer Leverkusen, it was widely reported on June 13. The Premier League champions will pay an initial £100 million, comfortably surpassing their own record outlay, but the performance-related add-ons, if achieved, would make it a potential British record. Liverpool's overall outlay for the 22-year-old Germany international could surpass the £115 million Chelsea agreed to pay Brighton in 2023 for Moises Caicedo, who turned down the Reds. Midfielder Caicedo cost Chelsea an initial £100 million fee, which could rise to £115 million. Striker Darwin Nunez was Liverpool's previous record signing in 2022, although they have not paid the full £85 million as he has not met all the requirements for certain add-ons to be due. Manchester City had been keen on Wirtz but pulled out, reportedly due to the spiralling costs of the whole package. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
2 days ago
- Business Times
Stocks to watch: SIA, Boustead, Ban Leong
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Friday (Jun 13). Singapore Airlines (SIA) : An Air India plane bound for London crashed moments after taking off from the city of Ahmedabad on Thursday and more than 240 casualties have been reported, authorities said. The Boeing 787-8 Dreamliner, with 242 people on board, which was headed for Gatwick Airport, south of the British capital, had only one survivor after it crashed into a medical college hostel during lunch hour. SIA has a 25.1 per cent stake in Air India following a merger of Vistara – its full-service airline joint venture with Tata Sons – with India's national carrier. Shares of SIA closed 0.4 per cent or S$0.03 lower at S$7.03 on Thursday. Boustead : The company announced that it is conducting strategic reviews for the sale of its stake in some of its logistics and industrial real estate assets to a real estate investment trust (Reit), to be listed on the mainboard of the Singapore Exchange (SGX). The engineering and technology group said on Thursday that the review is part of its 'ordinary course of business to periodically consider options and opportunities' in relation to its investments to unlock shareholder value. The counter closed 0.8 per cent or S$0.01 higher at S$1.25 on Thursday, before the announcement. Ban Leong : The technology products distributor on Thursday announced that its offeror, Epicsoft Asia, has acquired around 93 per cent or 100.2 million shares of Ban Leong. Consequently, the percentage of the total number of issued shares held in public hands has fallen below 10 per cent, the company said in a bourse filing. It added that Epicsoft Asia intends to acquire all the offered shares not yet acquired. Shares of Ban Leong closed flat at S$0.60 on Thursday. Trading halt Stoneweg European Reit (Stoneweg E-Reit) : Units of Stoneweg E-Reit will cease to trade on SGX on Jun 13 from 5 pm, the company announced on Thursday. Prior to the trading halt announcement, the manager of the Reit announced that it will be converted into a stapled group. Each unit of Stoneweg E-Reit will be stapled to a unit in Stoneweg European Business Trust. It will then form a stapled security in an entity known as Stoneweg Europe Stapled Trust. The stapled securities will be traded on SGX with effect from Jun 16, 9 am. The counter ended 0.6 per cent or 0.01 euros higher at 1.59 euros on Thursday.
