UK LABOUR MARKET FIRMS AFTER RECENT SLOWDOWN
British employers raised pay and recovered some of their appetite for hiring in December, according to a survey that the Bank of England may see as another sign of lingering inflation pressure in the labour market. Hiring of permanent workers continued to shrink last month as employers worried about the economy, but less severely than in November. ring of permanent workers continued to shrink last month as employers worried about the economy, but less severely than in November. Pay for new hires in permanent and temporary roles grew more quickly in December than in November although the increase for permanent staff was the second weakest since March 2021. The BoE raised its benchmark interest rate to a 15-year high of 5.25% in August and has held it there since, saying borrowing costs are likely to need to stay elevated for "an extended period" to snuff out inflation pressures in the economy. The central bank is particularly worried about excessive growth in pay, which official data shows rose at an annual rate of just over 7% in three months to the end of October.
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