Surge in hiring as hospitality reopen adds to pressure on UK labor market – FT

Early Monday in Asia, the Financial Times (FT) came out with headlines suggesting online job advertisements in the UK’s hospitality sector jump above pre-pandemic levels for the first time since the start of the crisis.

The analysis depends upon the Adzuna data while saying, “The total number of vacancies had risen 18 percent in the same period, and was ‘approaching the milestone of 1.0 million’.”

The report also mentions, “The rush to hire goes well beyond the sectors that are reopening. A monthly survey by the Chartered Institute of Personnel and Development and Adecco, the recruitment group, shows optimism about staffing at an eight-year high, with two-thirds of employers aiming to recruit in the next three months, and just one in 10 cutting jobs.”

“Gerwyn Davies, a CIPD analyst, said it was “inevitable” that the surge in hiring linked to reopening would level off later in the year, adding that it remained to be seen whether pay awards would keep pace with inflation,” said FT.

Market implications

Given the UK employment data scheduled for publishing on Tuesday, upbeat headlines help GBP/USD to bounce off an intraday low of 1.4084.

Read: GBP/USD Price Analysis: Bulls battle key hurdle around 1.4100