The Recruitment and Employment Confederation (REC) has responded to the latest Office for National Statistics labour market figures, with Interim Chief Executive Maxine Bligh warning that the jobs market remains stuck with little momentum ahead of the Budget.
Bligh said the figures paint a steady but unspectacular picture for both jobseekers and the wider economy, with employment and unemployment barely shifting.
Falling payrolled employment, she argued, suggests too much tentativeness remains in hiring decisions. The temporary job market has at least stabilised, offering some reassurance for those looking for immediate work or unable to work permanently.
Employers need confidence to hire
Bligh said the lack of momentum in the labour market shows the government must do more to give employers the confidence to take on staff. That means lessening the cost of doing business, giving firms a chance to switch from resilience to risk against a background of ongoing uncertainty.
“Jobseekers have been watching the same job market movie for a while now.”
She added:
“A steady but unspectacular picture for both jobseekers and the wider economy, with employment and unemployment barely shifting. Falling payrolled employment suggests too much tentativeness remains in hiring decisions, although the temporary job market has at least stabilised, offering reassurance for those looking for immediate work or those unable to work permanently.”
Pay growth watched ahead of Budget and Bank of England
Bligh said pay growth remains resilient and will be watched closely by pension policymakers and ahead of the Bank of England’s next interest rate decision.
Businesses, she said, will back the government going bold with the Budget next month to rebuild employer confidence by supporting growth, boosting hiring and strengthening labour market participation.
“The lack of momentum in the labour market shows the government must do more to give employers the confidence to take on staff. This means lessening the cost of doing business, giving firms a chance to switch from resilience to risk against the background of ongoing uncertainty.”
“Pay growth remains resilient and will be watched closely by pension policymakers and ahead of the Bank of England’s next interest rate decision.”
“Businesses will back the government going bold with the Budget next month to rebuild employer confidence by supporting growth, boosting hiring and strengthening labour market participation.”
