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UK’s ‘low-hire, low-fire’ jobs market hurting young people; US inflation higher than expected – business live
The UK’s jobs market is cooling mainly because employers are hiring less, rather than making more staff redundant, according to Bank of England deputy governor Clare Lombardelli. She said this pattern protects people already in work but makes it harder for jobseekers to enter employment or move to a new role, with young people particularly affected.
Lombardelli said economic activity has held up better than expected after the recent energy cost shock, unemployment has risen gradually and redundancies remain relatively low. She warned that jobseekers may not match the vacancies available, so rising unemployment may ease wage pressures less than before; fewer opportunities can also weaken productivity, growth and the economy’s ability to adapt.
In short
- Employers are hiring less, while redundancies remain low.
- Young people face greater difficulty entering work.
- The Bank says labour-market shifts may affect wages and growth.
Explained simply
The Bank of England is the UK’s central bank. It sets interest rates to help keep prices stable and monitors the economy, including employment and wages. Clare Lombardelli is one of its deputy governors.
A “low-hire, low-fire” jobs market is one where employers take on fewer people but also make relatively few redundancies. That can offer security to people who already have jobs while making it harder for new entrants, including young people, to find work or change roles.
The balance between job vacancies and jobseekers matters for wages and economic growth. If people looking for work do not have the skills or experience employers need, fewer vacancies may not reduce pressure on wages as much, and businesses may find it harder to grow or adapt.
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