Low unemployment shines spotlight on need for workplace skills policy

Commenting on this morning’s release of labour market statistics, that showed unemployment falling to 3.7% in the 3 months to March 2022, Kitty Ussher, Chief Economist at the Institute of Directors, said:

“The unemployment rate is now lower than at any time since the early 1970s. Combined with half a million more vacancies in the economy than before the pandemic, there are plenty of job opportunities for people who are looking for them.

“This is good news for households but it causes difficulties for businesses trying to retain staff and recruit for the right skills: our surveys show a massive 42% of firms citing ‘skills shortages’ as having a negative impact on their organisation. This morning’s data puts the onus on government to prioritise workplace skills policy, to ensure firms have access to the talent they need.”