REC response to ONS labour market figures, March 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 numbers are marginally weaker than expectations as the jobs market waits on growth to return. Recruiters report that firms are still ready to move but are taking longer to make decisions about investment and hiring in the face of economic uncertainty. This explains the relatively slow rate of decline, a picture which contrasts with business surveys that show high levels of optimism for later in the year. The Bank of England beginning to cut the base rate would deliver a shot of confidence to businesses and support a likely bounce back in growth this summer.

“Pay growth is weakening at a steady rate, which is likely to fall further when the April 2023 pay awards fall out of the calculation. There is little risk of pay driving inflation to stay higher at this point.”

Neil Carberry added:

“To get inactivity down government needs to look at childcare, transport and address NHS waiting lists. Cutting employee National Insurance was the right call when addressing personal taxation but it is not a silver bullet to encourage enough people to work. The Budget didn’t add up to the industrial and workforce strategy we really need despite the Chancellor’s obvious interest in workforce matters. The centre of government should invite more expert outsiders to help it prioritise overcoming labour shortages and avoid this costing the economy up to £39 billion every year - just short of two whole Elizabeth Lines.”

Ends

Notes to editors:

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