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CIPD response to latest ONS Labour Market Statistics

Further falls in number of EU-born workers and unemployment rate highlight rising recruitment and retention challenges for employers

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Commenting on the ONS Labour Market Statistics, Gerwyn Davies, Senior Labour Market Analyst at the CIPD, said: 

“Today’s figures confirm that the UK labour market has suffered from a ‘supply shock’ of fewer EU-born workers coming to live and work in the UK during the past year, compared with previous years.  This has contributed to labour supply failing to keep pace with the strong demand for workers; which is consistent with another welcome fall in unemployment.

“The tightening labour market is putting modest upward pressure on pay, but this still isn’t leading to more widespread pressure due to ongoing weak productivity. The battle for workplace productivity will be won or lost in the workplace. It’s vital that employers look at ways in which they can improve people management in order to maximise the potential of technology and raise the skill levels of the workforce.”