UK firms in ‘significant financial distress’ hits record levels; Gold rises over $2,700/ounce – as it happened

Toxic effect of high inflation" is hurting businesses, reports Begbies Traynor

UK companies are cutting back on hiring due to economic uncertainty, new data this morning shows.

The Recruitment & Employment Confederation (REC) has reported that the number of job vacancy adverts dropped below 1.6m last month, for the first time in two years.

A fall in new job ads is symptomatic of a wait-and-see approach some employers are taking as they wait for more from the government around their plans to fuel the economy. This week's announcement of the Industrial Strategy has helped, as has the clarity on the Employment Rights Bill. A longer timescale for the Bill has settled fears of policies being rushed in, but there are still nerves about the longer-term impact on hiring with so much still to determine.

This is why most businesses are looking to the Budget at the end of the month before they decide how to invest, to tell them what money they will have to invest in hiring. The Chancellor must demonstrate an understanding of the challenging cost environment that businesses face after a period of high inflation and interest rates, and the relief they now need.

Today's Labour Market Tracker shows that Head Teachers and Principals (41.6%), School Midday and Crossing Patrol Occupations (25.5%) and Authors, Writers and Translators (19.9%) had the largest increase in the number of job postings in September."

The arrival of new seasonal clothing and a surge in back-to-school bargain hunters helped deliver welcome growth in the non-food sector last month, despite a backdrop of rocky consumer confidence. At EE, we saw buoyancy in the tech sector, with a jump in smartphone sales driven by the launch of the new iPhone 16.