Labour Market Tensions Remain

13 Aug 2024

Published in: British Chambers of Commerce News

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The BCC responds to the latest ONS labour market data.

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

“The labour market is continuing to give mixed signals as the number of vacancies declines for the 25th time alongside persistently high levels of economic inactivity and falling unemployment.

“Employment costs also remain a major concern for employers, with real wage earnings still rising strongly, amid widespread recruitment difficulties and ongoing competition for skilled workers.

“Bridging the UK’s long-standing skills gap will be crucial to bringing more balance to the labour market. The focus must be on creating an education and training system that properly prepares young people for the world of work. It must help adults to return to work, stay in work, and continuously upskill and reskill for a rapidly changing workplace.

“As hundreds of thousands of students receive A-level, T-level and vocational qualification results this week, employers will be eager to bring new talent into their businesses. They will be looking beyond the technical and academic achievements to assess people’s real-world work-readiness and development potential.”

Black Country Chamber of Commerce Policy & Impact Officer Gemma Edwards commented:

“Labour and skills remains a big area of concern for our members in the Black Country. We know that our members could rapidly grow and expand their businesses if they could find enough of the right staff.

"Today’s labour market data indicates a confused picture as the number of vacancies declines for the 25th time alongside persistently high levels of economic inactivity and falling unemployment.”

More detail on the ONS data can be found here.