British companies are still hiring despite fears a recession will hit the country by the end of this year
British companies are still hiring despite fears a recession will hit the country by the end of this year.
Accounting firm BDO’s employment index rose to a 2.5-year high in June as the pandemic and post-Brexit staff shortages hampered recruitment.
As the economic recession approaches, unemployment will typically rise as demand for goods and services falls and businesses begin to lay off staff.
Looking for employees: In general, unemployment will rise as the economic downturn begins, as demand for goods and services falls and companies start shedding staff.
While the Bank of England expects the economy to contract for five quarters from October, unemployment has yet to rise.
But the BDO inflation index also rose as the cost of living crisis showed no signs of abating.
And optimism among owners was at its lowest since April 2021.
Kelly Crossthwaite, Partner at BDO, said: “Despite the current hiring activity, we could see a fall in labor demand and employment indices towards the end of the year as employers direct their resources to deal with inflation and interest rate hikes. are.’
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