REC response to ONS labour market figures, January 2024

The ONS has published its latest labour market statistics this morning. Neil Carberry, REC Chief Executive, said:

“The labour market has slowed over the past few months, but activity levels remain resilient. Vacancies are higher than pre-pandemic and unemployment, while rising, is still at a low level by historic standards. The jobs market does now seem to be in a bit of a stand off with the wider economy, with both employers and candidates waiting to see how the economy develops before committing to new roles.

“This situation means there is a premium on getting growth going by injecting confidence into businesses and workers. With pay clearly moderating – and other surveys pointing to this continuing in the Spring – and inflation falling, reducing interest rates would offer many hard-pressed businesses and workers a sign of progress.

“As the debates at Davos this week show, adapting to the changes to the labour market driven by technology and demographics will be vital to delivering sustainable, inclusive growth. But that requires people issues to be prioritised in government and by business leaders. Using the upcoming Budget to set out a change of pace on skills, welfare-to-work and business support would be welcome – as would a more sensible debate around the UK economy’s need for managed immigration. A fresh look at the Apprenticeship Levy – which business has called out as failing for almost a decade now – is essential.”

Ends

Notes to editors:

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