The jobs market has suffered its worst month in more than a decade, according to new analysis that will add to pressure for a further interest rate cut.

A report by accountant BDO found that the strength of the jobs market declined for the 14th consecutive month in August, with a reading of 95.89.

Anything over 95 signals growth, meaning recruitment is still just expanding, but this was the lowest score since January 2013.

The jobs market has faced a declining number of vacancies, with many businesses slowing or freezing hiring as they weather tougher economic conditions.

It suggests higher interest rates are starting to bite. The BDO index -  a  “poll of polls”, made up of data from the UK’s most influential business surveys - is likely to be among data considered by Bank of England policymakers as they weigh up whether to cut borrowing costs again later this month.

There were also more people claiming unemployment-related benefits in August, at the highest level since December 2021, according to figures from the Office for National Statistics.

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