REC response to ONS labour market figures, January 2026

The ONS published its latest labour market figures this morning. The Recruitment and Employment Confederation (REC) Chief Executive Neil Carberry said:

“Today’s jobs numbers indicate that the autumn did see a stabilisation in the labour market picture. Vacancies edged up, and we received mixed messages from the different employment indicators. Continued progress in lowering the pandemic-era spike in inactivity – which has been slower to reverse in the UK than elsewhere – is also positive.

“But let’s be clear - there is still a lot to do to give employers the confidence to rev the engine on hiring. Businesses are concerned by the scale of Government-imposed costs they are facing. From new obligations required under the Employment Rights Act, to swingeing rises in National Insurance and other taxes. Sensible action to help firms navigate big changes and manage costs will help to build confidence to invest and hire over time.

“Temporary jobs are a cornerstone of the UK labour market – with a million temporary workers in post on any given day.  The government needs to pay close attention to how Statutory Sick Pay and proposed obligations to offer guaranteed hours impact it. We are far from a booming labour market – new obligations around temporary work risk firms not hiring at all, and higher levels of non-compliance that punish both workers and good businesses.”