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City of London

The Great Resignation Could Soon Be the Great Sacking

As the outlook for the UK economy dims, optimism around the job market also fades, giving leverage back to the employers.

Morning commuters on London Bridge in the City of London, UK.

Morning commuters on London Bridge in the City of London, UK.

Photographer: Jason Alden/Bloomberg

The tide is turning in the UK jobs market. Earlier this year, a shortage of skilled workers after the easing of lockdown restrictions meant employees had the upper hand. Sizeable pay rises were up for grabs and employers were offering massive bonuses in a desperate attempt to retain talent. But the mass exodus of workers leaving their jobs, dubbed The Great Resignation, may be coming to an end. Early signs show a change underway, thanks to the pinch of rising inflation and the cost of living crisis. The most recent business barometer from Lloyds Banking Group found the rate of businesses planning to hire staff slowed to its softest pace since last year.

This week on In The City, David Merritt speaks to James Reed, CEO and Chairman of Reed UK, Britain's largest recruitment company, for a broader picture of the jobs market and how things may be affected by a new prime minister this autumn.  He also explains why data collected by Reed UK is not signaling a recession. Plus, Tom Metcalf, who heads Bloomberg's finance coverage in London, joins to break down what is happening to jobs in the City across different financial sectors.