Latest ONS data suggests firms will face increasing hiring difficulties

Responding to the latest Labour market data from the Office for National Statistics (ONS), Janine Chidlow, Managing Director of WilsonHCG comments:



“The number of unemployed people per vacancy has fallen slightly once again, down to 1.6. Meanwhile, the level of those in employment has increased while the number of individuals with second jobs is also up from early 2024. When you combine these figures alongside the fall in vacancies, it suggests that skills shortages are increasing and access to talent is becoming more difficult.



“The fact that the number of unemployed people per vacancy stands at just over one, is a sign that the UK's access to skills is in crisis. We are essentially facing a scenario where we have enough jobs for everyone in the adult population.  But when we consider that some are unable to work, while others may not have the technical skills required for the roles that need to be filled, it suggests that we still have more jobs than workers able to fill them. This is further evidenced by the increase in those with a second job.



“To some extent, this scenario makes the fall in vacancies a relief, but it will also be a worry for those still concerned about productivity in the UK. What businesses need is a more sustainable talent pool. That will require a shift in mindsets to allow for the re- and up-skilling of the workforce to fill gaps. Reliance on the flexible labour market will also grow, though access to this could be hindered if the Employment Rights Bill announced last week isn't carefully worded in order to encourage firms to engage with temporary resources, rather than increase the perceived risks to employers.”



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