PROPHECIES OF DOOM HURT THE ECONOMY?

A new report published by the Recruitment and Employment Confederation and KPMG shows that businesses are now putting their hiring on hold as the new Government faces accusations of economic doom mongering ahead of the Autumn Budget.

It is a sign that confidence among employers is ebbing with companies also being concerned by the potential challenges of facing the Government’s labour market agenda which may result in bumping up workers’ rights and potentially harm the economy.

The Report goes on to warn that the UK economy may weaken further before it may improve which also adds to the overall sense of uncertainty which, in turn, effects recruitment plans.

These concerns appear to be confirmed by an index tracking permanent placements which fell to 44.6 during August 2024 being down from 47.7 in the previous month. A reading of less than 50 signals that hiring numbers have been falling.

The above represents disappointing news especially as overall the economy is doing rather well having weathered more recently the storms of an unprecedented global pandemic and a major European War. However, rather than this legacy be picked up and built on, there is now a risk that the country may be pushed into a downward spiral caused by growth-crushing taxes being imposed coupled with an exodus of high earners having already begun. ?