REC response to ONS labour market figures, October 2022

This morning (Tuesday 11 October) the Office for National Statistics (ONS) published its latest labour market update. Responding to the figures, Neil Carberry, Chief Executive of the Recruitment & Employment Confederation (REC), said:

“A small drop in vacancies and in overall employment are signs that the post-pandemic bounce has reached its end. But vacancies remain higher than unemployment, which is at historic lows, meaning it is still a good time to be looking for work. The big economic issue remains the capacity of our jobs market. With inactivity still high, the number of workers we have is restricted, meaning that it is still difficult for firms to hire. Individual companies need to work with their recruiters on their approach to attracting more candidates, looking at a wide range of issues from flexible hours to staff facilities. But Government also needs a plan. As today’s CBI report suggests, we need action on childcare and a pragmatic approach to immigration to help meet the needs of the jobs market. Radical reform on skills, moving on from the failed Apprenticeship Levy, is also essential.

“Shortages mean that firms are feeling pressure to raise wages, which is also driven by rising inflation for households. This only increases the need for firms to manage their overall pay bills in ways that allow for higher pay that firms can afford. It is no surprise, therefore, to see firms using more temporary work as a tool to try new ideas, resolve shortages or meet unexpected demand at a time like this. Temps get flexibility over when and where they work, but they also make a huge contribution to our economy.”

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Find out more about the REC's new research, Overcoming shortages: How to create a sustainable labour market.