Business consulting firm BDO said UK companies reported the fastest growing labor market since February 2020. The BDO reported that its index, which measures the business climate among senior executives, rose for the fifth consecutive month to 112.74 points last month – an increase of two points compared to February. Anything above 95 is considered growth. Managers in manufacturing and services were the most enthusiastic about hiring new staff, he said, as their optimism offset concerns across the economy about disrupted supply chains. Kaley Crossthwaite, a BDO partner, said: “The job market has shown resilience throughout the pandemic and then continued to grow as the restrictions have been gradually lifted. While it is reassuring to see employment return to near pre-pandemic levels, this strong form could end as the cost-of-living crisis, rising inflation and broader geopolitical issues divert business attention from growth and exercise. pressure on the employment index “. The BDO’s findings confirm recent data from the Office for National Statistics, which showed the UK unemployment rate falling to 3.9% in the three months to January, falling below pre-pandemic levels for the first time. The Resolution Foundation, an independent think tank that monitors living standards, said the pay rise came from a competitive job market as companies increased their payrolls to attract and retain employees. However, economists fear that wage increases will soon be offset by rising inflation and rising energy prices, which means workers will not feel the effects of a dynamic labor market. Nye Cominetti, a senior economist at the Resolution Foundation, said: “With inflation hovering around 8% in the coming months, most workers’ wages will fall in real terms, further pushing up living standards in the coming months.” On Friday, it emerged that in the US the number of people signing up for unemployment support had fallen to its lowest level since 1968, falling to 166,000 last week.
