REC Responds to Labour Market Statistics

 

Commenting on today’s publication of labour market statistics by the Office for National Statistics (ONS), which reports data for September - November 2016, Recruitment & Employment Confederation Chief Executive Kevin Green says:

 

“The UK is close to full employment with a rate of 74.5 per cent, but the trend of slowing employment growth is concerning. Our data shows that candidate availability has significantly worsened, which goes some way to explain why employers are finding it more difficult to fill vacancies.  

 

“The immediate question is - how do employers find the people to fill the jobs they have available? Especially in sectors such as healthcare, hospitality and construction, which rely heavily on workers from the EU, there are real fears about the impact of reduced immigration.

 

“It’s encouraging to see that pay growth has increased by 2.8 per cent in the last 12 months. However, with inflation rising we could see a squeeze on real wages in the months ahead. Consumer spending could be affected, which would create further challenges for businesses. Confirmation from the Prime Minister that the UK will leave the single market will only add to anxiety about the future health of the jobs market.”

 

Ends

 

Notes to editors: 

 

1. Full ONS data is available at: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/jan2017