Backing hospitality and retail could halt the job vacancy slide

"The UK labour market has shown worrying signs of loosening, with unemployment jumping to 5% in the three months to September - the highest rate since May 2021. Job vacancies remained largely static at 723,000, a 12% decrease from 822,000 in the same period in 2024, while the number of people in employment declined, particularly across retail, construction, and professional services."

"One option is to turbocharge the hospitality and retail industries through targeted government support. Increases in the minimum wage and employer NICs, along with the reduction of business rates relief from 75% to 40%, have presented significant challenges for these industries. Given their capacity to employ large numbers of young and low-skilled workers, these sectors can respond rapidly to labour market demands, providing an immediate stimulus to employment levels. The government would be wise to revitalise the industry as job vacancies continue to fall."

Unemployment rose to 5% in the three months to September, the highest rate since May 2021, while job vacancies fell to 723,000, a 12% drop year-on-year from 822,000. Employment declined, especially in retail, construction and professional services, as businesses adopt ultra-cautious hiring amid uncertainty around the Budget, the Employment Rights Bill and AI-driven changes to work. The softening labour data increases calls for measures to support job creation, retraining and business investment. Targeted support for hospitality and retail is proposed to absorb young and low-skilled workers quickly. Average regular pay growth eased to 4.6% year-on-year, trailing inflation and squeezing real incomes.

Read at London Business News | Londonlovesbusiness.com