Might 17 2022

Commenting on the ONS Labour Market statistics for Might 2022, BCC Head of Economics, Suren Thiru, stated:

“Though payroll employment continues to rise and the unemployment charge is falling, the headline figures extra mirror a number of distorting elements, together with rising economic inactivity, somewhat than the fact on the bottom.

“File jobs vacancies spotlight the perilous hiring crunch going through companies. With rising financial inactivity confirming that the UK workforce is shrinking, labour shortages are prone to persistently drag on UK progress by stifling corporations’ potential to function at full capability.

Though total earnings progress rose sharply, the strong headline determine extra displays sturdy bonus funds than a significant enchancment in underneathmendacity wage progress.

Regardless of recruitment difficulties, the injury to agency’s funds from hovering inflation and rising nationwide insurance coverage will restrict the extent to wages can proceed rising.

Whereas demand for staff is at the moment sturdy, the squeeze on corporations’ funds from hovering vitality payments, surging inflation, and the rise in nationwide insurance coverage is prone to weaken recruitment intentions and weaken wage progress within the close to time period.

“An emergency price range is urgently wanted to offer corporations the respiration area to recruit and retain workers, together with reversing the just lately launched Nationwide Insurance coverage enhance till a minimum of the subsequent monetary 12 months.”

Extra data on the ONS Labour Market information will be discovered right here.

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