© Reuters. FILE PHOTO: Bank of England Governor Andrew Bailey poses for a photograph on the first day of his new role at the Central Bank in London, Britain March 16, 2020. Tolga Akmen/Pool via REUTERS
LONDON (Reuters) – Bank of England Governor Andrew Bailey said the British central bank was watching closely to see if the country’s labour market cools down or whether employers choose to hold on to staff in a slowdown, given the shortage of candidates to fill roles.
“The question is of course, is: is the labour market going to slow down?” Bailey said in an event organised by the Peterson Institute for International Economics in Washington.
British businesses were experiencing widespread recruitment problems, Bailey said.
“We have to ask ourselves the question, well: is that going to cause the labour market to be stronger for longer, notwithstanding a decline in growth? Because there may well come a point where people decide they’re going to hoard labour.”
UK labour market might defy economic slowdown, BoE’s Bailey says