The labour market is set to see an end to 10 months of positive hiring intentions by employers following a dip in productivity and growing fears of a recession, according to a new report. Business advisory firm BDO said the labour market is at a “turning point”, with recessionary fears expected to put downward pressure on employment as hiring intentions start to fall.
Soaring energy costs have added to a decline in business output and productivity, said BDO, leading to a fall in confidence among companies. Kaley Crossthwaite of BDO said: “We’re already seeing the impact of a challenging environment, with many businesses forced to make cuts and in some cases consider whether the business will continue to be viable.
“Soaring energy costs and inflationary pressures are headwinds we can expect to become more severe in the coming months, exacerbating the economic and political uncertainty both firms and consumers feel this winter, particularly as we await the first signs of a fall in employment figures and a recession approaches.”
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