Britain’s hiring slowdown puts the first step into work under pressure

Britain's labour market is weakening in a way that can leave existing employees relatively protected while making the search for a new role harder. In a speech published on 10 November, Bank of England deputy governor Clare Lombardelli said the adjustment was occurring mainly through reduced hiring rather than a sharp increase in dismissals.

Her assessment connects the current slowdown with a longer decline in movement between jobs. Lombardelli warned that this combination could hold back productivity and fall particularly heavily on young people seeking their first opportunity. She also argued that unemployment could provide less relief from wage pressure if jobseekers' skills do not match the positions available.

Recruiters report a fresh setback

A separate survey published by the Recruitment and Employment Confederation on 9 November offers a current view from recruitment consultancies. Permanent placements fell in October for the first time in four months, while temporary billings also declined. The KPMG/REC report, compiled by S&P Global, draws on responses from around 400 consultancies.

That report contains qualifications to a simple story of deterioration. Overall vacancies were falling at their slowest pace since August 2024, and starting pay growth strengthened slightly. It measures recruiters' reported changes from the previous month, rather than counting every job in the economy. Its findings and Lombardelli's wider assessment therefore describe related aspects of the market, not identical statistics.

Analysis: stability can conceal a closed door

A company can preserve its existing workforce while deciding against replacing someone who leaves or opening an additional position. From inside that business, the decision may feel like continuity. From outside, it removes a possible route into employment. That distinction helps explain why a relatively calm workplace can coexist with a difficult job search.

It also changes how the public conversation should use the word resilience. Keeping people employed is valuable, but an economy needs routes for entrants and people changing direction as well. A lack of opportunities can constrain progression without producing the sudden, visible event of a large redundancy announcement. The absence of that announcement is not a complete measure of labour-market health.

The policy question remains open

The warning does not establish a new interest-rate decision. The Bank's separate minutes, published on 5 November, record an 8–1 vote to raise Bank Rate by a quarter of a percentage point to 4%. Reuters reported on 10 November that Lombardelli had not ruled out another increase but said she lacked enough information to decide.

The next test is whether hiring, pay and prices move together or pull in different directions. For readers interpreting forthcoming data, distinguishing a vacancy, a completed appointment and a lost job will matter. Each answers a different question about who can participate in the economy and how easily that position can change.