Dec 9 (Reuters) - Demand for workers in Britain collapsed last month after the new Labour government's first budget, a survey published on Monday showed, adding to other signs of the impact of the tax increases on employers.
The Recruitment and Employment Confederation trade body and accountants KPMG said their index of demand for staff slid to 43.9, the lowest reading since August 2020, from October's 46.1.
Only the COVID-19 pandemic, the global financial crisis, and the immediate aftermath of the Sept. 11, 2001, attacks on the United States resulted in worse readings.
Permanent staff placements fell in November at the fastest rate since August 2023, although the pace of decline for temporary workers eased slightly from October, REC said.
A BoE survey showed 54% of businesses said they would respond to their higher costs from the budget by reducing employment, while 38% expected lower wages.
Consultancy Incomes Data Research said on Monday the median pay deal offered by private sector employers slipped to 3.9% in the three months to October from 4.0% previously.
The BoE is watching for signs of diminishing inflation pressure in the labour market.
