REC response to ONS labour market figures, March 2025

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

“Today’s data reflects a greater stability in the labour market, with payrolled employees and job vacancies holding steady, and the employment rate up.

“There’s a frustrating sense of ‘what if?’ in this data though. The upcoming national insurance changes have likely dampened some hiring, adding pressure to businesses already struggling with rising costs - including those providing essential staff for public services. Today’s relatively strong pay numbers also need to be set in the context of the downward pressure on pay we will see from April as employment costs rise.

“In that challenging context, it is good to see progress on tackling economic inactivity. Business and government must work together to get more people into the workforce sustainably. But that has to start with helping business to hire people on whom they are taking a chance. Welfare reform is one part of that, but so is tackling barriers to hiring people on potential. Addressing the design of the Employment Rights Bill to build firm confidence in taking a chance on someone and getting skills right with a focus on learners and their employers should both be priorities if we are to pick up pace.”