Job vacancies have tumbled nearly 15pc as businesses struggle to hire in the face of high borrowing costs and the UK battles a recession.
Vacancies in January fell below 900,000 for the first time since April 2021, according to data from the jobs search engine Adzuna.
The downturn will fuel hopes of an interest rate cut sooner rather than later, after the Bank of England froze the rate at 5.25pc last August following a series of 14 consecutive increases.
In high interest rate environments, businesses’ budgets are stretched as borrowing becomes more expensive. This means there is less cash to hire new employees. Economic uncertainty in times of recession also slows hiring.
Changes in the Bank Rate take approximately a year to filter through to employers’ decisions, but the weakening jobs market suggests that the effects have started to be felt.
Andrew Hunter, of Adzuna, said: “As we predicted last month, January 2024 has proven to be one of the most difficult starts to the year for job hunters in recent years with companies continuing to put hiring plans on ice.
“This will be disappointing for those hunting for work and only serves to drive up competition nationwide for available roles.”
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