REC response to ONS labour market figures, September 2025

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

“A slower labour market in the early summer is no surprise – it reflects what business surveys have been telling us. Firms were struggling with low growth and rising employment costs from National Insurance to National Minimum Wage to energy, and from fears about the Employment Rights Bill. But the picture has steadied, and our members report a slightly brighter outlook for the rest of the year after a longer and tougher hiring summer slowdown than usual.

“Private sector wages are normalising, with upward pressure now driven by government choices on public sector pay and the National Minimum Wage. This is significant, given the impact of these figures on the costly Pensions Triple Lock next year.

“The NHS workforce is now remarkable in scale, reaching a record size this month. With the fiscal position so tight, government must now focus on productivity rather than just ever more numbers. This means proper workforce thinking and a focus on what works, not ideology. We can deliver a well-supported, engaged NHS workforce that achieves more with the same. Part of this is not wasting money – like spending more on temporary bank staff when on-framework agencies are typically more cost-effective with the same high or higher standards.

“With more recent business surveys a little more positive than the early summer, employers want to see government back them to deliver growth. That means a Budget without the nasty cost surprises of last year and far greater pragmatism on the delivery of their employment agenda. That would give firms the confidence to shift gears and help labour market momentum to build.”