Britain’s firms still on lookout for staff, despite fears country will tumble into recession from end of this year
Britain’s firms are still on the lookout for staff, despite fears the country will tumble into a recession from the end of this year.
The Employment Index from accountancy firm BDO hit its highest level for 2.5 years in June, as staff shortages after the pandemic and Brexit made it harder to recruit.
Usually, as an economic downturn approaches, unemployment would rise as demand for goods and services fall and businesses begin to cut staff.
On the lookout for staff: Usually, as an economic downturn approaches, unemployment would rise as demand for goods and services fall and businesses begin to cut staff
While the Bank of England thinks the economy will shrink for five quarters from October, joblessness has not yet begun to tick up.
But BDO’s inflation index was also on the rise as the cost of living crisis showed no signs of easing.
And optimism among bosses was at its lowest point since April 2021.
Kaley Crossthwaite, partner at BDO, said: ‘Despite the current hiring activity, we’re likely to see demand for labour and the Employment Index decline later in the year, with employers devoting their resources to managing inflation and interest rate rises.’