REC response to ONS labour market figures, December 2023

The ONS has published its latest labour market statistics this morning. Neil Carberry, REC Chief Executive, said:

“The labour market is clearly slowing, but employment is being underpinned by the fact that labour supply is so tight.

“Today’s data reflects emerging trends from our monthly Report on Jobs that pay pressures are receding. We expect that to continue as the high pay settlements paid by employers in 2023 fall out of the data over the next six months. In the medium-term, there is a risk of inflation returning and lower growth if we don’t address the challenges raised by shortages through skills investment, a focus on productivity and a more sensible approach to immigration for work. That’s why firms want to see government adopt a people and productivity focused industrial strategy.

“The number of vacancies is knocking on a million and, despite the longest period of falling numbers on record, is still above pre-pandemic levels. This shows the scale of the challenge we face. It’s time for the first priority to be growth – that’s the only way to bring the tax burden down and fund public services, and it requires our economy to be at the front of the government’s mind.”  

Ends

Notes to editors:

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