Cartoon tying up the british pound

IoD press release Recruitment difficulties persist despite October’s market instability

Commenting on this morning’s release of labour market statistics that showed the rate of unemployment fell across the third quarter to 3.6% in the 3 months to September 2022, Kitty Ussher, Chief Economist at the Institute of Directors, said:

“The overall picture has changed little in recent months: low unemployment, high vacancies and a high rate of economic inactivity, all of which point to continuing difficulties for employers trying to recruit. Even the period of market instability did not dent hiring, with an additional 74 thousand people added to payrolls during October.

“Employers are continuing to raise wages, with average annual pay growth excluding bonuses running at 6.6% in the private sector, although for staff this is not sufficient to compensate fully for rising inflation.

“Looking forwards, there are early signs of change: vacancies, although high, are falling back from the peak shortages experienced earlier in the year and the ONS reports that some employers are holding back on hiring in the face of economic pressures.

“We also now have a deeper understanding of the reasons many people have left the labour market. Although ill-health is undoubtedly a factor, the ONS has cast doubt on whether it is the main reason for the initial decision to stop work: two thirds of those of working age who report as long-term sick were economically inactive for a different reason in the previous three months.”

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