Interest rates are rising, making companies more cautious about hiring, report says
The decline in economic activity resulting from higher interest rates has led to a decline in business output and hiring intentions, new research shows.
Management consultancy BDO said the impact of the Bank of England’s tighter monetary policy would be reflected in the labor market and lead to a fall in demand for labour.
At the same time, higher rates would have led to a slowdown in productivity growth.
Kaley Crossthwaite, partner at BDO, said: “Businesses are responding to the higher interest rate environment with conservative hiring decisions.”
“Caution is the motto.
“Predictions of a recession paint a weaker picture for the economy and we can expect a collapse in output, optimism and employment in the final months of 2023 due to rising unemployment and higher rates for businesses.”
https://www.standard.co.uk/business/business-news/interest-rates-rise-making-businesses-more-cautious-about-hiring-report-says-b1106086.html Interest rates are rising, making companies more cautious about hiring, report says
