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 | Lancashire Times A Voice of the Free Press |
7:39 AM 17th May 2022
business
Low Unemployment Shines Spotlight On Need For Workplace Skills Policy
Kitty Ussher, Chief Economist at the Institute of
Directors, said:
“The unemployment rate is now lower than at any time since the early 1970s. Combined with half a million more vacancies in the economy than before the pandemic, there are plenty of job opportunities for people who are looking for them.
“This is good news for households but it causes difficulties for businesses trying to retain staff and recruit for the right skills: our surveys show a massive 42% of firms citing ‘skills shortages’ as having a negative impact on their organisation. This morning’s data puts the onus on government to prioritise workplace skills policy, to ensure firms have access to the talent they need."
“The unemployment rate is now lower than at any time since the early 1970s. Combined with half a million more vacancies in the economy than before the pandemic, there are plenty of job opportunities for people who are looking for them.
“This is good news for households but it causes difficulties for businesses trying to retain staff and recruit for the right skills: our surveys show a massive 42% of firms citing ‘skills shortages’ as having a negative impact on their organisation. This morning’s data puts the onus on government to prioritise workplace skills policy, to ensure firms have access to the talent they need."
BCC Head of Economics, Suren Thiru, said:
“Although payroll employment continues to rise and the unemployment rate is falling, the headline figures more reflect several distorting factors, including rising economic inactivity, rather than the reality on the ground.
“Record jobs vacancies highlight the perilous hiring crunch facing businesses. With rising economic inactivity confirming that the UK workforce is shrinking, labour shortages are likely to persistently drag on UK growth by stifling firms’ ability to operate at full capacity.
“Although total earnings growth rose sharply, the robust headline figure more reflects strong bonus payments rather than a meaningful improvement in underlying wage growth. Despite recruitment difficulties, the damage to firm’s finances from soaring inflation and rising national insurance will limit the extent to wages can continue rising.
“While demand for workers is currently strong, the squeeze on firms’ finances from soaring energy bills, surging inflation, and the increase in national insurance is likely to weaken recruitment intentions and weaken wage growth in the near term.
“An emergency budget is urgently needed to give firms the breathing space to recruit and retain staff, including reversing the recently introduced National Insurance increase until at least the next financial year.”
“Although payroll employment continues to rise and the unemployment rate is falling, the headline figures more reflect several distorting factors, including rising economic inactivity, rather than the reality on the ground.
“Record jobs vacancies highlight the perilous hiring crunch facing businesses. With rising economic inactivity confirming that the UK workforce is shrinking, labour shortages are likely to persistently drag on UK growth by stifling firms’ ability to operate at full capacity.
“Although total earnings growth rose sharply, the robust headline figure more reflects strong bonus payments rather than a meaningful improvement in underlying wage growth. Despite recruitment difficulties, the damage to firm’s finances from soaring inflation and rising national insurance will limit the extent to wages can continue rising.
“While demand for workers is currently strong, the squeeze on firms’ finances from soaring energy bills, surging inflation, and the increase in national insurance is likely to weaken recruitment intentions and weaken wage growth in the near term.
“An emergency budget is urgently needed to give firms the breathing space to recruit and retain staff, including reversing the recently introduced National Insurance increase until at least the next financial year.”
Matthew Percival, CBI Director for People and Skills, said:
"Despite a slowdown in growth this March, the UK's labour market remains red hot with record vacancies and job-to-job moves.
"Firms are struggling under the weight of persistent labour shortages, rising energy prices and soaring inflation which is adding to the cost of doing business. Workers are also struggling, with inflation already 1.2% higher than pay and rising.
“Urgent action is needed to help alleviate the pressure facing businesses and communities across the UK. Putting pounds into the pockets of people facing hardship and stimulating business investment are two actions the government can take now that will help us to emerge from this crisis."
"Despite a slowdown in growth this March, the UK's labour market remains red hot with record vacancies and job-to-job moves.
"Firms are struggling under the weight of persistent labour shortages, rising energy prices and soaring inflation which is adding to the cost of doing business. Workers are also struggling, with inflation already 1.2% higher than pay and rising.
“Urgent action is needed to help alleviate the pressure facing businesses and communities across the UK. Putting pounds into the pockets of people facing hardship and stimulating business investment are two actions the government can take now that will help us to emerge from this crisis."