Labour market pressures ease but firms still face barriers – Chamber
A further fall in vacancies in the UK job market suggests labour market pressures are beginning to ease, business leaders said today.
But Greater Birmingham Chambers of Commerce warned there is still work to be done to remove barriers to employment, as unemployment in the West Midlands increase and employment fell.
Figures released today by the Office for National Statistics (ONS) said the estimated number of UK vacancies fell by 13,000 to 916,000 in the January to March 2024 period.
Although it is a 21st consecutive decrease, vacancies remain above pre-pandemic levels.
However, West Midlands unemployment rose by 0.9 per cent, with employment decreasing by 0.7 per cent.
Nationally, employment declined by 0.5 per cent and unemployment rose by 0.3 per cent.
It is worth noting, the ONS added that estimates of quarterly change should be treated with caution due to the increased volatility of Labour Force Survey estimates.
Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “This gradual, ongoing decline in vacancies suggests that labour market pressures are easing somewhat, both nationally and across the West Midlands.
“Indeed, this is also reflected in our latest Quarterly Business Report, which saw the proportion of Greater Birmingham businesses facing recruitment difficulties decline to the lowest figure since Q3 2021.
“However, wage growth continues to outpace inflation, and labour costs are cited by local firms as the most prominent source of pressure to raise prices.
“If the Government is serious about reducing inflation, raising productivity and driving growth, they must do more to remove barriers to work for individuals and release cost pressures on businesses, freeing up cash to enable investment in workforce skills.”
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