NEW jobs figures have increased fears that Britain is heading towards its first recession for a decade.
Job vacancies advertised on Britain’s most popular recruitment website, Reed, tumbled by 16,467 – or 2.3 per cent – in the second quarter, according to The Mail on Sunday.
That’s the biggest quarterly fall since 2010, sparking fears that Britain is heading towards a financial downturn.
Data from recruitment firms is known as an early indicator of a slump because they can monitor how many jobs are being advertised, while official data only measures jobs being filled.
When companies stop advertising roles it can be an early warning sign that there are concerns about risks, which usually turns into lower economic growth figures.
A recession is when the economy has two consecutive quarters of shrinking. Last week, the Office for National Statistics data showed that the economy recovered slightly from a downturn in May.
On average they occur every decade, they reduce living standards by £2,500 per household and raising unemployment.
It comes after think tank Resolution Foundation warned Britain is at its highest risk of a damaging recession in 12 years.
James Smith, research director at the Resolution Foundation: “The UK’s recession risk is at its highest level since 2007, with growth slowing at home and abroad, and widespread uncertainty around Brexit.
“Policymakers can’t prevent recessions from happening, but they can limit their damage with the right policy response. The problem for the incoming government and the Bank of England, however, is that many of the tools used to fight the last downturn are either spent or severely blunted.”
In recent weeks, the economic data in the UK and across much of the world has taken a turn for the worse.
The majority of manufacturing, construction and services companies have warned that output is falling.
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Earlier this month the governor of the Bank of England, Mark Carney, warned that there has been a “sea change” in the world’s financial markets, driven by pessimism about the economic outlook.
One of the impacts of the last recession means that those aged 26 to 32 now are likely to earn less.
If you’re worried about the impact of a downturn, here’s how to future-proof your career by securing one of these ten top jobs from AI expert to software developer.
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