More vacancies than unemployed, for the first time ever

Commenting on this morning’s release of labour market statistics that showed unemployment falling on the quarter to 3.5% in the 3 months to August 2022, Kitty Ussher, Chief Economist at the Institute of Directors, said:

“The labour market remains extraordinarily tight with, for the first time ever, more vacancies in the economy than the number of people looking for work, and no let-up in hiring in September. Although the level of vacancies now looks like it has peaked, it remains significantly higher than before the pandemic, at 1.2 million.

“Combined with such a low rate of unemployment and pay rises edging upwards, we see no reason why the Bank of England would pause its upward march of interest rate rises when it meets in early November.

“In the longer term it is essential that government gets a handle on the rising sickness rates among 50-64 year olds that are causing them to drop out of the labour market, both for their wellbeing and to make it easier for employers to find the talent they need.”