REC response to ONS labour market figures, July 2024

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

“Today’s labour market numbers reflect the gentle slowdown that business surveys have been reporting for the past few months. Vacancies are now falling back to their pre-pandemic level, but the impact of last year’s high inflation is sustaining pay rates. 

“The new government seems to appreciate the formidable challenges we face, including high economic inactivity and widespread skills mismatches. Yesterday’s announcements on UK-wide Apprenticeship Levy reform and the creation of Skills England are positive, though how the new English skills body is set up will define its success. Firms need more focus on local activity – not top-down bureaucracy. 

“The new government must also be careful that its own agenda on employment protection doesn’t stifle progress by protecting those in work at the expense of those looking for it. On skills and employment law, a proper partnership with business is necessary to make changes work effectively for all workers – especially the millions who want and choose to work flexibly and those in need of a new opportunity.” 

Notes to editors 

Overcoming shortages - How to create a sustainable labour market, REC, July 2022 
In this report, we show exactly how much damage could be done if we do not step up. With a 10% surge in demand for staff across the economy, and the labour market restricted by shortages, we could see a 1.2% fall in expected GDP and productivity by 2027 – costing the economy anywhere between £30 billion and £39 billion every year. This figure is just short of the entire current defence budget, or two whole Elizabeth Lines. 

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Find out more about the Recruitment & Employment Confederation at www.rec.uk.com.