REC response to ONS labour market figures, October 2026

The ONS published its latest labour market figures this morning. The Recruitment and Employment Confederation (REC) Interim Chief Executive Maxine Bligh, said:

“Today’s figures take some of the shine off recent labour market momentum. Employment is up, unemployment is down and wage growth has picked up, all signs that the jobs market remains stable. But the biggest fall in vacancies since the start of the year is a bitter blow for jobseekers this morning and shows that employers remain cautious. Jobseekers and the Chancellor will hope the Budget comes at the right moment to boost business confidence, particularly among smaller firms facing higher employment costs. But today’s data also underlines that simply keeping the labour market on the rails is not enough. To generate stronger hiring momentum, the government must take bold action to reduce barriers to recruitment, including lowering employment costs and taking a pragmatic approach to employment rights reforms. This means an urgent rethink of its unnecessary guaranteed-hours gamble with the flexible labour market. Continuing with these plans would especially damage employment opportunities for NEETs, many of whom get onto the jobs ladder via agency work. Cuts to employer National Insurance contributions (NICs), as well as restoring the NICs threshold, would provide immediate support.”