The rate of job creation in the U.K. dropped to the lowest level in seven months at the last check, increasing concerns that the country’s recovery is struggling to gain traction, according to Financial Times. On Wednesday, a report from the Recruitment and Employment Confederation and KPMG showed that the index for permanent job placements dropped to 55.1 in May from a level of 60.6 in the prior month. The gauge sits closer to the critical mark of 50 that indicates no job growth. The growth of temporary hires was also down to 52.4 from 56.6, with both indices at the lowest level since November.
Kevin Green, the chief executive of REC said that the report reveals a “worrying deceleration” in the labor market, adding, “Private sector job creation has not hit the buffers but it is clearly slowing, which heightens concerns over whether public sector job losses can be absorbed.” The number of vacancies was seen at the lowest level in five months, although shortages of skilled workers in computing and engineering remained. Pay growth was seen lower as well due to an increase in candidate availability that left superior bargaining power in the hands of employers. Additionally, the weak job market is seen as creating uncertainty that is holding back the housing market, with a separate report form Halifax showing a 4.9% decline in during the three months through May, which is the largest such drop since October 2009.
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