UK Jobs Market Hits Worst Performance in Over a Decade

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UK Jobs Market Hits Worst Performance in Over a Decade

Loveworld / 20 mins

September 10, 2024

1 min read

The UK’s job market has experienced its worst month in more than ten years, according to a report by accountant BDO. The report, which details the state of the UK labor market for August, revealed a decline in job market strength for the fourteenth consecutive month, with the index dropping to 95.89. This figure indicates only modest growth in recruitment, marking the lowest score since January 2013.
Additionally, the number of people claiming unemployment-related benefits rose to its highest level since December 2021. This increase adds pressure on the Bank of England to consider cutting interest rates as the country faces economic challenges.
Despite this gloomy outlook, financial markets showed resilience, with major indices like London’s FTSE 100, Germany’s DAX, and France’s CAC all posting gains. Traders are now awaiting US inflation figures later this week, which could influence further economic decisions and market movements.
In response to the job market data, President Seema Shah from Principal Asset Management expressed cautious optimism, highlighting that while rate cuts might help, the broader economic context will be crucial in determining their effectiveness.