Labour market cools but firms still face recruitment struggles – Chamber

Many businesses in Greater Birmingham are still struggling to recruit skilled talent, despite new figures suggesting labour market pressures are beginning to ease, business leaders said today.

According to the Office for National Statistics (ONS), UK average regular earnings, excluding bonuses, increased by 6.6 per cent in the three months to November, down from a revised 7.2 per cent in the previous three months.

The estimated number of vacancies in the October to December period fell by 49,000 to 934,000.

In the West Midlands, the employment rate for 16 to 24 year-olds increased by 0.1 per cent on the quarter, while unemployment remained largely unchanged at 5.3 per cent.

Similarly, there was minimal change to the national figures, with employment increasing by 0.1 per cent to 75.8 per cent and unemployment remaining at 4.2 per cent.

Emily Stubbs (pictured), senior policy and projects manager at Greater Birmingham Chambers of Commerce, said: “At a national level, labour market pressures are easing, with wage growth and vacancies falling once again.

“However, almost three quarters of Greater Birmingham firms report difficulties recruiting new staff and many West Midlands residents remain unable to access meaningful employment opportunities. Skills gaps, exacerbated by the pandemic, continue to play a critical role in these challenges.

“In developing the Local Skills Improvement Plan for the West Midlands and Warwickshire, the Chambers continue to work with stakeholders across the region and at a national level to ensure that skills provision is aligned with the needs of local businesses. 

“To help firms overcome recruitment difficulties and unlock the full potential of their existing workforces, the Chamber’s annual Growth Through People conference is also returning in March to share the latest best-practice advice and guidance on leadership and people management.”

Contribute your insights to the Chamber’s ongoing Local Skills Improvement Plan survey, aiming to help providers of post-16 education and training in responding to employer needs. 

Register your place at the Growth Through People Conference for 2024.