Employment growth in the UK returned to pre-pandemic levels in March, but the jobs boom looks set to be short-lived amid rising living costs and the impact of the war in Ukraine, a report says.
The business advisory firm BDO said UK companies reported the fastest growth in the labour market since February 2020.
BDO said its index, which measures business sentiment among senior managers, rose for a fifth consecutive month to a reading of 112.74 last month – a two-point increase compared with February. Anything above 95 is considered to be growth.
Managers in the manufacturing and services sectors were the keenest on hiring new staff, it said, as their optimism outweighed concerns across the economy about disrupted supply chains.
Kaley Crossthwaite, a partner at BDO, said: “The labour market has shown resilience throughout the pandemic and then continued growth as restrictions have gradually lifted. While it’s reassuring to see employment return to…