Tight labour market problem persists

April 19, 2023

Reacting to the latest ONS Labour Market figures, Jane Gratton, Head of People Policy at the British Chambers of Commerce, said:

 

“The Government needs to fix the people problem in the economy if it is to have any hope of boosting growth.

“But despite the latest fall of 47,000 in overall vacancies, the total number is still well over 1m.

“These unfilled jobs are a drag anchor on firms, preventing them from fulfilling orders and taking on new work. People shortages are also, inevitably, feeding into upward pressure on wage demands, as seen by private sector pay growth of 6.9%. This remains a big concern for the Bank of England and a chief reason for the continuing rise in interest rates.

“The Government and employers need to work together to shift the dynamics on vacancies. While employers can do more to make workplaces more accessible and flexible, the Government must quickly put in place its Spring Budget childcare reforms. It also needs to make sure there is enough high-quality supply to meet demand, and that people are supported back into work.

“When firms cannot recruit and train from the local labour market, and where national shortages are crippling sectors of the economy, they must have access to skills and labour from outside the UK. We need a pragmatic approach to immigration policy – that ensures the Shortage Occupations List accurately reflects the reality on the ground.”

 

More detail on the ONS labour market figures can be found here.