UK Employers Cut Jobs in First Month of Iran Conflict
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Article content(Bloomberg) — UK businesses stepped up job cutting in March, a sign that the Iran war is causing fresh turmoil in the labor market. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe number of employees on payrolls dropped 11,000 after falling almost 6,000 the previous month, tax data published by the Office for National Statistics showed on Tuesday. It was worse than the flat reading expected by economists. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe figures suggest the seven-week conflict is piling renewed pressure on the jobs market, which had been showing tentative signs of stabilization after being hit by sharp increases to payroll taxes and the minimum wage imposed by Prime Minister Keir Starmer’s Labour government. Vacancies fell to the lowest levels in almost five years.Article contentArticle contentLabour Force Survey figures for the three months through February showed unemployment unexpectedly fell to 4.9%. However, economists now expect the jobless rate to increase as employers slam the brakes on hiring.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe International Monetary Fund warned last week that Britain will be one of the hardest hit advanced economies from the conflict, which sent energy prices soaring, and predicted that unemployment will pick up to 5.6% this year.Article contentThe Bank of England is expected to respond not by cutting rates to boost the economy, but raising them to stop higher inflation triggering a feedback loop on wages and prices. Figures on Wednesday are forecast to show inflation accelerated to 3.3% in March from 3% in February.Article contentThe ONS also said private-sector wage growth slowed to 3.2% in the three months through February, in line with expectations and below the 3.25% the BOE deems compatible with its 2% inflation target.Article contentArticle contentArticle content—With assistance from Mark Evans, Joel Rinneby and Harumi Ichikura.Article contentTrending Posthaste: Canada's home prices have now been falling for four years — and haven't hit bottom yet News Latest inflation data reinforce rate cuts would be on the table if not for Iran, says economist Economy The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Bank of Canada's Macklem says he has spoken to Fed chair about risks from Anthropic's Mythos AI model Banking Garry Marr: Canada's REIT sector is shrinking fast. For investors, that might be a good thing Real Estate Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Canada's home prices have now been falling for four years — and haven't hit bottom yet News Latest inflation data reinforce rate cuts would be on the table if not for Iran, says economist Economy The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Bank of Canada's Macklem says he has spoken to Fed chair about risks from Anthropic's Mythos AI model Banking Garry Marr: Canada's REIT sector is shrinking fast. For investors, that might be a good thing Real Estate