Companies’ hiring intentions have fallen to their lowest level in almost a decade as recession looms, according to a new survey.
BDO said its employment index had declined for a third consecutive month to its weakest reading since 2014.
The report comes ahead of updates from three sizeable recruiters, Robert Walters PLC, PageGroup PLC (LSE:PAGE) and Hays PLC (LSE:HAS), which have all noted a marked slowdown in activity this year.
The smallest of the trio, Robert Walters, reports on Tuesday 10 October, followed by PageGroup on Wednesday, with fellow FTSE 250-listed peer Hays on Thursday
Businesses were struggling to maintain staffing numbers “amid higher borrowing costs, elevated wage growth and weaker customer demand”, the advisory firm concluded, warning that “given that output remains weak and a recession is likely on the horizon, these pressures on firms are expected to have persisted last month”.
Kaley Crossthwaite, partner at BDO LLP, said: "An even more pessimistic outlook from businesses, declining output and the lowest reading on the employment index in nine years are mounting indicators of the slowdown in economic activity predicted over the winter months."
“With the threat of recession on the horizon, businesses are understandably feeling the pressure," she added.