CBI responds to latest Labour Market Statistics

Matthew Percival, CBI Future of Work Director, said: 

“While there continue to be signs that the labour market is softening, it is happening slowly. Today’s data confirms that many businesses are still struggling to hire the people that they need, leading to higher employment costs that are putting pressure on prices.

“With an election fast approaching, all parties need to look at measures to support business investment as ultimately, it’s only productivity growth that can help to bring down inflationary pressures, create the capacity for sustainable growth and improve living standards.

“Difficulties hiring staff is still a drag on investment as firms redeploy funds to meet the short-term imperative of attracting the people they need, rather than prioritising long-term investment. That’s why businesses welcome steps to help more people into work, but reducing the availability of visas for skilled workers pushes in the opposite direction. An honest conversation about immigration would focus on how visa rules best support economic transformation and sustainable growth, beyond short-term fixes.”