Labour Market Remains In Flux

15th October 2024

Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce responds to the latest ONS labour market statistics

Responding to the latest ONS labour market statistics, Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said:? 

“With vacancies continuing to fall and the pace of wage rises slowing, it would appear there are further signs of the labour market loosening. 

“It’s good to see that levels of unemployment and economic inactivity have fallen slightly. But our latest research shows three quarters of firms are still struggling to find staff with the skills that they need.? 

“Firms are worried the autumn budget might lead to a higher tax burden – particularly a potential increase in NICs - and that the Government’s new employment reforms could increase costs. 

“There are two key issues the Chancellor must address to boost employment and help keep momentum in the economy. First, is to help the long-term sick back into work and, second is to plug the gaps in local training provision.? 

“We want a reduction in the employer and employee tax on workplace health services so more people can get tailored support more quickly.? And we need longer-term funding for Local Skills Improvement Plans, to help more businesses provide more training for more people. 

More detail on the ONS data can be found here.