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Latest ONS Labor Market Statistics: How Should Employers React?

ONS has released the latest labor market figures. This shows that the unemployment rate is at a record low and the number of vacancies is at a record high.

The unemployment rate has fallen to its lowest rate since 1974 (3.7%). For the first time since the record began, there are fewer unemployed than job vacancies.

Statistics also show that job openings reach record highs (1.295m), but growth is slowing.



Employment increased 0.1 points to 75.7% in the quarter.

Driven by resignation rather than dismissal, work-to-work movements have risen to a record high of 994,000.

On a real basis (inflation-adjusted), total wage growth was 1.4% and regular wages were down 1.2% year-on-year.

“Employment continues to grow, but today’s figures highlight the challenges faced by workers watching inflation eat up their living standards. Regular wages are 4.2% (bonus). Except), overtaken by a 7% rise in inflation, the Bank of England has warned that a recession and inflation could rise to 10%, low-wage, precarious employment workers. Faces great uncertainties. Faced with a living cost crisis, they are faced with tough choices, “warns Ben Harrison, director of the Labor Foundation at Lancaster University.

How should the government and employers respond?

“For weeks, the government has hinted that additional support will come, but this week instead of demanding salary increases, will all workers just spend more time if they’re struggling? I’ve heard that you need to get a better salary. Work, “says Harrison.

“It’s important to ensure that targeted support is currently available through an emergency budget. As a priority, the government has introduced ways to increase profits in line with inflation, or to achieve the same effect. We have to find a way to provide more safety to those who need it most, “Harrison suggests.

vacancy

With mass layoffs still in full swing, the record number of vacancies seen in these numbers is not surprising.

“The highest vacancy and availability of workforce created solely by resignation does not help employers. They play a role and at the same time lose people,” said Aspire’s founder and chairman. One Paul Farrer said.

However, Neil Carberry, CEO of Recruitment & Employment Confederation (REC), emphasizes the benefits of one of these soaring vacancies. I’m looking for a job because there are fewer unemployed people in the UK than there are jobs. “

Nonetheless, “more people aren’t working and aren’t looking. Over time, this capacity constraint only slows growth and contributes to inflation. Companies and governments are more. We need to work together on how to bring people back to the labor market and how to ensure that the new immigration policy addresses the fundamental gap, ”Carbury adds.

Crisis of living expenses

Indeed, Pawel Adrijan’s Head of EMEA Research said:

“Despite a 0.1% reduction in GDP in March, employment activity remained high and the labor market remained strong as 2.1 million new hires began in the first quarter of this year.

“But the UK’s economic outlook is clouded and the cost of living crisis is worsening, so it could be the last strong month before the labor market slows down. This is a sign of delay. Tends to be. “

“For the first time, there are fewer unemployed than job vacancies, and the unemployment rate has dropped to pre-pandemic levels of 3.8%. This was last seen in December 2019, although growth has slowed. , Still 1.3 million jobs recorded. Filled in the UK, further pressured employers looking for workers.

Commenting on how staff shortages also contribute to higher wages, Carbury argues that this is unsustainable unless a productive and competitive economy can grow. .. Encouraging growth needs to be an important focus for governments to move forward. The cost of living crisis cannot be resolved by slogans or trade wars. “

Latest ONS Labor Market Statistics: How Should Employers React?

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