UK Labour Market Shows Signs of Improvement!
The latest Labour Market Report from the UK government shows that the labour market is still recovering from the COVID-19 pandemic, but there are some signs of improvement – Payrolled employees have increased, along with the employment rate.
However, some concerns remain – The number of job vacancies decreased by 85,000 on the quarter to 1,034,000 in April to June 2023, and real pay growth is falling due to high inflation.
Key Takeaways
- The number of payrolled employees in the UK increased by 0.2% on the quarter to 30 million in June 2023
- The employment rate increased by 0.2% on the quarter to 76% in March to May 2023
- The unemployment rate increased by 0.2% on the quarter to 4% in March to May 2023
- The economic inactivity rate decreased by 0.4% on the quarter to 20.8% in March to May 2023
- The number of job vacancies decreased by 85,000 on the quarter to 1,034,000 in April to June 2023
- Average weekly earnings (including bonuses) increased by 6.9% in March to May 2023
- Average weekly earnings (excluding bonuses) increased by 7.3% in March to May 2023
What Does This Mean for You?
If you are an employer, here are some considerations that you can help to prepare for the challenges of the current labour market:
- Start planning now. The labour market is changing rapidly, so it’s important for employers to start planning now for the future. This includes understanding the skills shortages that are likely to impact their industry and developing strategies to address them
- Invest in training and upskilling. One way to address skills shortages is to invest in training and upskilling your existing workforce. This can help to keep your employees up to date with the latest skills and knowledge and boost productivity
- Be prepared to offer competitive salaries and benefits. In order to attract and retain talent, employers may need to be prepared to offer competitive salaries and benefits. This includes things like health insurance, paid leave, and retirement plans
- Be flexible with working arrangements. The way that people work is changing, so employers need to be flexible with their working arrangements. This could mean offering remote work options, or flexible hours if possible
If you are a candidate looking for a job, the latest labour market data suggests that the job market is improving. Yet, it is still important to be prepared and to have a strong CV and cover letter. You should also be aware of the challenges that the labour market is facing, such as the rising cost of living.
Overall, the labour market in the UK is still recovering, but there are some challenges that need to be addressed. The government will need to continue to support businesses and workers as the economy recovers, and it will need to take steps to address the rising cost of living.
If you are a candidate or a business and would like more information, please contact us on 01604 239555 or email info@impactrecruitment.co.uk and a member of our team will be in touch.
