REC response to ONS labour market figures, August 2024

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

“Today’s data reflects the cooling market recruiters reported in the Spring - though there are clear positive signals in things such as the upswing in temporary work. Vacancies have now normalised towards their pre-pandemic norm and cooling pay growth justifies the Bank of England’s recent interest rate decision.

“It is very clear where the challenge lies in our jobs market. Employment rates are still well below pre-pandemic levels and economic inactivity is way too high. It’s essential that the new government works with businesses to address this - and makes sure its plans for workplace regulation don’t put barriers in the way of getting jobs for those who really need them.”

Notes to editors

Overcoming shortages - How to create a sustainable labour market, REC, July 2022
In this report, we show exactly how much damage could be done if we do not step up. With a 10% surge in demand for staff across the economy, and the labour market restricted by shortages, we could see a 1.2% fall in expected GDP and productivity by 2027 – costing the economy anywhere between £30 billion and £39 billion every year. This figure is just short of the entire current defence budget, or two whole Elizabeth Lines.

JobsOutlook: Employers’ confidence is up – but new government must help them shift to hiring mode
Firms are feeling more confident about their business and the economy, according to the Recruitment and Employment Confederation’s (REC) latest JobsOutlook. In the latest representative survey of almost 500 employers across the country, the picture was at its most positive since early 2022.

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The REC is the voice of the recruitment industry, speaking up for great recruiters. We drive standards and empower recruitment businesses to build better futures for great candidates and themselves. We are champions of an industry which is fundamental to the strength of the UK economy.

Find out more about the Recruitment & Employment Confederation at www.rec.uk.com.