July Labour Market Statistics: Comment from the Institute for Employment Studies
11 Jul 2023
Commenting on today's figures, Tony Wilson, Director at the Institute for Employment Studies said:
“Today’s figures have perhaps the first signs that higher interest rates may be starting to put the brakes on the economy, with unemployment ticking up to 4%. However pay growth is exceptionally strong again, which reflects that many firms are still creating jobs that can’t be filled. This is unlikely to be a short-term problem though, with a combination of an ageing population and lower migration meaning we’re facing at least a decade of weak employment growth. So if we want to get inflation down in the long run, we need urgent action to address labour shortages and skills needs, not just ever more rises in interest rates. This needs to include extending access to employment programmes like Restart for the two million people who are outside the labour force and want to work, as well as reforming the Apprenticeships levy to allow more flexible, shorter-term help to support reskilling.”
Read our detailed briefing note here