How will ONS warnings of “economic pressures” affect recruitment in the Midlands?

The latest labour market data from the Office for National Statistics (ONS) make for interesting reading. Overall, the news was good, with the employment rate marginally up and the number of economically inactive also decreasing slightly. Of concern was the ONS’ reference to “economic pressures” that are a major reason why businesses are holding back on recruitment.

Analysis of data seen by APSCo does tend to suggest that firms are hiring more temporary staff as they are wary about what the future holds and unwilling to invest in potentially very costly permanent staff during a period of uncertain growth.

However, looking at the Midlands, things do seem to be a bit rosier. Both the East and West Midlands have seen increases in the employment rate for October to December 2022 by 0.1 and 0.4 per cent (compared to July-September 2022) respectively. Nothing to write home about perhaps but these regions are in comparatively rude health when examining data from other areas of the UK. We’ll have to wait for more data supplied by APSCo’s Trusted Partner, Vacancysoft, in the next two weeks for a more detailed breakdown of the main drivers for this uptick in employment.

Delving further into the region one can’t ignore the huge transport project that is High Speed 2 (HS2). Despite reports that the project is to be scaled back yet again, the government has re-confirmed its commitment to the new railway line. With work well underway on Phase 1, demand for highly skilled workers in IT and engineering is expected to remain high. It’s a reasonably safe assumption to say that there are a plethora of opportunities for recruiters in the Midlands.

Of course, it’s not just demand from HS2 Ltd itself but firms in the wider supply chain supplying all the highly advanced machinery and technology needed. This is one of the reasons that skills and talent are at the heart of APSCo’s political campaigning efforts in Westminster. The UK needs an economic climate that will enable an innovative, flexible labour market with necessary access to the right skills and talent to assist the growth of the UK economy. We’ve laid out our vision in a submission to the Treasury which you can read in full here.

We’ll be sure to keep members informed as soon as the latest hiring data for the Midlands is published.

If you’re not a member and would like the opportunity to see the data complete the form below: