REC response to ONS labour market figures, July 2026 - REC

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

“The new Prime Minister inherits a labour market showing tentative signs of improvement, with a resilient employment rate and moderating wage growth providing a platform for further progress. To build on that momentum, policymakers should focus on reducing the cost of doing business, which is a critical component of the rising cost of living. That is especially important for young people, where youth unemployment remains close to 15%, even before inactivity is taken into account.  

“Inserting real pragmatism into regulatory interventions in the labour market, like the unworkable proposals for guaranteed hours in the Employment Rights Act, would help immeasurably. Combined with higher National Insurance costs, inflation-busting National Minimum Wage rises and a lack of effective skills reform, these measures risk undermining employers’ confidence to hire and holding back this nascent jobs recovery.

“Business is the solution to the issues the country faces, it is time to stop treating it as the problem. Firms can help clear the obstacles facing Andy Burnham across jobs, investment and growth if his new government replaces misguided paternalism with pragmatism and partnership.”