Britain’s biggest recruitment firm has said the deep cost of living crisis is pushing workers back into the jobs market, as inflation forces early retirees to re-evaluate their finances.
Reed Employment has seen an 8% increase in applications by job seekers since the beginning of September, a sign that rising living costs are forcing people to find work.
Chairman James Reed said the increase in applications was partly driven by those coming out of retirement ahead of a feared drop in the number of jobs available.
He said: “Our data shows jobs are shrinking but applications are increasing. This is also a reversal, as applications are falling during the overall job boom.”
“This would suggest that those who are not looking are now watching.”
He warned that the jobs boom runs the risk of turning into a “two-year jobs slowdown” as hiring slows sharply.
The job market is already showing signs of change. Data from the Recruitment and Employment Confederation, a trade body, found that the number of permanent employees declined for the first time in nearly two years in October, while vacancies dropped to record highs.