The latest labour market data has been released by the ONS.
Paul Butterworth, CEO at Chambers Wales South East, South West and Mid, said:
“The latest labour market data provides a mixed picture of the employment landscape; vacancies continue to fall and the unemployment rate is falling but economic inactivity levels are persistently high and employment costs are still a significant concern for employers.
“In Q2 of 2024, over three quarters of businesses in Wales (76%) were under pressure to raise their prices due to labour costs according to our Quarterly Economic Survey. These pressures coexist with recruitment challenges, and attracting and retaining talent in Wales with the right skills for their sectors.
“Bridging the skills gap could help bring more of a balance to the labour market and this could be achieved through improved collaboration between businesses, academia, and educational institutions and providers, as well as Regional Learning and Skills Partnerships which can identify and promote skills pathways at a more focused, local level.”
Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said:
“The labour market is continuing to give mixed signals as the number of vacancies declines for the 25th time alongside persistently high levels of economic inactivity and falling unemployment.
“Employment costs also remain a major concern for employers, with real wage earnings still rising strongly, amid widespread recruitment difficulties and ongoing competition for skilled workers.
“Bridging the UK’s long-standing skills gap will be crucial to bringing more balance to the labour market. The focus must be on creating an education and training system that properly prepares young people for the world of work. It must help adults to return to work, stay in work, and continuously upskill and reskill for a rapidly changing workplace.
“As hundreds of thousands of students receive A-level, T-level and vocational qualification results this week, employers will be eager to bring new talent into their businesses. They will be looking beyond the technical and academic achievements to assess people’s real-world work-readiness and development potential.”
More detail on the ONS data can be found here.
