IoD press release Latest data shows employer demand for workers remains low
Commenting on this morning’s release of ONS labour market data, Anna Leach, Chief Economist at the Institute of Directors, said:
“Today’s data paints a picture of a soft labour market, with private sector pay growth dropping below 3% for the first time since 2020 and weak vacancy levels.
“Low levels of employer demand for labour unfortunately reflect a combination of government policies which have increased the cost and risk associated with hiring employees. This is choking off work opportunities for young people in particular, as jobs continue to decline in important youth employment sectors such as accommodation and food and retail.
“The cost of doing business has risen sharply in recent years, driving persistent weakness in hiring. The Government must take concrete steps to undo the damage done to the business case for employing staff. As a first step, it should instigate meaningful ongoing tripartite discussions on the implementation of the Employment Rights Act, starting with the right to guaranteed hours. This will help better address the risk that higher labour market regulations lead to permanently lower job availability.”
