REC reaction to the ONS labour market stats, May 2022

The ONS has published its latest labour market figures, which showed unemployment reaching a new record low and another record number of vacancies.

Reacting to the news, Neil Carberry, Chief Executive of the REC, said:

“These figures tell the story of a vibrant but stretched labour market in the first quarter of 2022. It’s a great time to be looking for work, as there are now fewer unemployed people in the UK than there are job vacancies. But employment levels and hours worked are still lower than before the pandemic, as more people are not working and also not looking to. Over time, this capacity constraint can only slow growth and contribute to inflation. Business and government need to work together on ways to attract more people back into the labour market, as well as ensuring the new immigration policy addresses fundamental gaps.

“These staff shortages are also contributing to rising pay. But these rises this will only be sustainable if we can grow a productive and competitive economy.  Encouraging that growth needs to be the key focus for government moving forward. The cost of living crisis won’t be solved by slogans, or trade wars.”

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