Job postings have fallen by a fifth over the past year, according to Indeed, in an indication of how the Bank of England’s interest rate hikes have hit demand for labour.
This means the number of job postings is now 0.9 per cent below levels in February 2020, shortly before the pandemic. Tech has seen one of the largest hiring slowdowns over that time period.
Vacancies in many sectors surged post-pandemic as firms looked for more workers to meet pent-up demand. Although the labour market has cooled since the pandemic, some categories have bucked the trend.
Job postings in education have more than doubled on their pre-pandemic level, while social science and estate agents have also seen high growth in postings.
Official statistics also point to a steady and prolonged fall in vacancies, with the number of job openings falling for the 23rd consecutive quarter between February and April.
However, like the official statistics, Indeed’s figures also suggest that a loosening labour market has not yet fed through into significantly lower wage growth.
Wage growth for new hires rose to a four-month high in May, according to Indeed’s Wage Tracker, with pay growing 6.5 per cent annually. The report suggested that April’s near ten per cent increase in the minimum wage was a key factor in supporting high wage growth as well as tight hiring conditions in specific sectors.
Lower paid categories reported the highest levels of wage growth, with pay in childcare rising 8.6 per cent year-on-year and wages in cleaning & sanitation and security & public safety both rising by 8.5 per cent.
Rate-setters at the Bank of England have been closely following developments in the labour market as they deliberate on when to cut interest rates.
Policymakers are concerned that stubborn wage growth could fuel price increases in the labour intensive services sector.
The Bank’s most recent monetary policy statement seemed hopeful that wage pressures would continue to moderate but noted that some data suggested “near-term pay growth could moderate by less than had been expected” in May.