There are now at least 1.2 million vacancies in the UK / GBP/USD has a big chance to reach 1:1
There are now at least 1.2 million vacancies in the UK
According to a recent survey of 1,043 managers by the Chartered Management Institute (CMI), nearly 90 percent said their agency was hiring in July 2022, the Financial Times reported on Sunday (September 25). In addition, nearly 40% said that they will increase hiring in the next six months, and one-third said that they will continue to recruit talents as usual. Official figures show there are currently more than 1.2 million vacancies in the UK.
Alistair Cox, chief executive of Hays, a FTSE 250 human resources company, said digitalisation across industries meant that businesses would continue to hire talent they never needed in the past, from automation to cybersecurity. Even as the general managerial situation continues to deteriorate, companies continue to digitize, and people with the right skills simply cannot fill the jobs that are being created, he said.
In July 2022, the number of unemployed (without a job but actively seeking employment) in the United States was reported at 5.670 million, which means that the number of job openings (11.239 million) at the end of July was 98.2% higher than the number of unemployed for the month.
GBP/USD has a big chance to reach 1:1
Last Friday (23rd), the new British Chancellor of the Exchequer Kwasi Kwarteng released the largest tax cut since 1972, and the British pound and British government bonds immediately fell sharply. When inflation rises, the government spends a huge amount of money, which will exacerbate price pressures. Foreign investors predict that the pound and the dollar may fall to parity (1:1), and the Bank of England (BOE) needs to raise interest rates more aggressively.
CNBC and Reuters reported that Kwarteng scrapped the top-tier income tax rate and scrapped a planned corporate tax hike. Liz Truss and Kwarteng claim that tax cuts are vital to the deregulation package, which could boost UK long-term economic growth to 2.5%.
However, the new tax cuts will see UK government borrowing surge by 72 billion pounds ($79 billion) over the next six months alone. Investors are particularly concerned that long-term tax cuts will cost the UK government £45bn a year. The market reacted violently, with the pound falling to a 37-year low against the dollar.
