IoD press release Loosening of labour market is welcome, but hiring challenges persist for business

Commenting on this morning’s release of labour market statistics that showed a drop in wage growth and a largely unchanged unemployment rate in the three months to November, Alexandra Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:

“Today’s data shows a UK labour market which continues to slightly loosen, with an 18th consecutive drop in the number of vacancies and with annual average pay excluding bonuses up 6.6%, down from 7.3% over the previous period. These developments will be welcome news for businesses after a period of acute inflationary pressures.

“However, the labour market remains tight by historical standards, with vacancies higher than the pre-COVID period and our own data showing that skills and labour shortages remain an acute issue for business leaders. In light of the government’s upcoming changes to the legal migration routes, action to increase the domestic labour supply is needed at the upcoming Spring Budget, alongside a sharp focus on delivering the promised expansion to childcare.”

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