OB vacancies hit another record high last month as employers struggled to find staff, leading to fears that the economy is slowing as Omicron runs rampant.
There were 1.22 million openings in the three months to November even after the furlough job protection scheme came to an end.
Lower migration, people retiring or looking after ill relatives has cut the number of people in the labour market by a million, the Institute for Employment Studies estimates.
That is making life hard for employers.
Matthew Percival, CBI Director of Employment, said:
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How this multitasking author uses tech to unleash her creativity“Job creation remained strong this autumn, but continuing difficulty hiring, the emergence of omicron variant and new restrictions will mean a challenging winter for businesses. With Plan B coming in, the net effect is that demand in some sectors will be suppressed. Those sectors hardest hit must be closely monitored as further targeted support may yet be needed.”
While pay has been rising, inflation is lately leaving many people living with lower disposable income. Average pay was up 4.9% compared to a year ago.
TUC General Secretary Frances O’Grady said: “It is good to see jobs were recovering – but the situation has changed since these figures. The omicron variant is spreading fast, and the economy is slowing. We need a plan B to protect jobs and livelihoods now.”
The figures comes ahead of a crunch meeting of the Bank of England’s Monetary Policy Committee this Thursday.
The Bank is increasingly concerned about inflation, but will probably leave rates on hold at 0.1%.
Neil Carberry, Chief Executive of the Recruitment & Employment Confederation (REC), said:
“The issue of labour shortages is hugely challenging for employers right now, as vacancies continue to hit new highs and unemployment remains low. But the real elephant in the room is rising inactivity and a smaller UK workforce – people either not in the UK or not looking for work. Reflecting this, overall hours worked are still well below our pre-pandemic numbers. This is a huge challenge to business and government.”
