LONDON: Wages for new hires in the United Kingdom rose at the slowest pace in four years in February as businesses scrambled to cut expenses ahead of a looming hike in employment costs, according to a survey closely watched by the Bank of England.
Starting pay growth deteriorated to levels last seen during the Covid pandemic, the report by the Recruitment and Employment Confederation and KPMG showed.
Recruiters also reported a decline in job postings and hiring activity.
The findings are further evidence that the labour market is cooling as firms brace for Chancellor of the Exchequer Rachel Reeves’ £26bil (US$33.6bil) increase in payroll taxes, along with another big rise in the minimum wage. Both are set to come into force next month. — Bloomberg
