The UK’s unemployment rate remained unchanged at 4.4% between October and December according to the Office for National Statistics, although average wages rose 3.4% compared with the same period a year ago.
Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said:
“There are clear signs of a further loosening in the labour market with fewer vacancies, although they remain just above pre-pandemic levels. However, pervasive skills shortages mean firms are competing for talent and wage growth remains strong.
“This is supported by BCC research which shows four fifths (79%) of firms cannot easily find the staff they need to fill roles. At the same time, three quarters of businesses say labour costs are the biggest pressure they face to raise prices.
“All of this is a continuing headache for employers and is putting the economy under increasing strain.
“Firms will face even more difficulty in the months ahead with the imminent rise in employment costs, driven by National Insurance and National Living Wage hikes. Many will be reconsidering their recruitment plans as they try to balance the books.
“There is a limit to how much additional cost business can absorb without employment and investment opportunities being damaged. The Government must do all it can to minimise costs for business and ensure they have access to a skilled and healthy workforce.”
More detail on the ONS data can be found here.
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