ONS labour response: Decline in jobs doesn’t mean the skills crisis is over

Responding to the latest Labour statistics from the Office for National Statistics, which showed that the number of vacancies in the UK is beginning to slow, Tania Bowers, Global Public Policy Director at the Association of Professional Staffing Companies (APSCo) comments:

“The post-pandemic hiring spike we experienced was bound to come to a halt at some time, but with recession fears looming and on-going Government uncertainty amidst a leadership contest, this drop is a concern for the country’s economy.

"Our own data supports the idea that permanent recruitment is slowing as the impact of the skills shortages over the last few years plays out. However, what our statistics are also indicating is that more businesses are turning to contract professionals as they struggle to fill resourcing needs. The data - provided by the global leader in software for the staffing industry, Bullhorn – revealed that the number of contract roles in the UK grew by 13% in July 2022 when compared to pre-pandemic figures (July 2019). In comparison, the number of permanent jobs dropped by 23% in the same period.”

“This reliance on the non-employed segment of the workforce simply isn’t sustainable at a time when the UK’s attractiveness as a destination to work for international contractors is dwindling post-Brexit. And with the impact of Off Payroll still being felt in the temporary recruitment market, the longer-term availability of these resources and ability to tap into skills in a cost-effective manner is at risk. We urgently need some stability from the Government and a clearer direction on the regulation of the employment market to ensure that the UK can manage through the difficult times ahead.”

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