James Reed, chairman of Reed Recruitment, shared a frank outlook on the UK job market during a Sky News interview, warning that rising unemployment and dwindling vacancies suggest a challenging road ahead for both businesses and job seekers. His comments followed the latest Office of National Statistics (ONS) labour market report, which highlights a rise in unemployment to 4.3% and a decrease of 9,000 payrolled employees in September.
Reed, who previously provided insightful perspectives as the keynote speaker at our World Leaders event earlier this year, noted one of the most concerning trends: the continued decline in job vacancies, which fell by an additional 35,000, marking the 28th consecutive month of reductions. He argued that this sustained fall underscores a “cooling of the jobs market,” intensified by the “Triple Whammy” impacting UK employers: the largest employment law overhaul in decades, a steep rise in the living wage, and a significant hike in employer national insurance contributions. “The consequences of this ‘Triple Whammy’ are still to be fully played out,” Reed stated, “but there’s no doubt that the overall outlook continues to be tough.”
Further insights from Reed’s October data reveal an evolving job market landscape. The report shows vacancies dropping by 20%, while applications have surged by 15%, suggesting that more candidates are actively seeking fewer available roles. Salaries, meanwhile, have seen a modest 4.2% rise as employers look to attract top talent amid economic pressures.
Reed underscored the importance of a flexible labour market, particularly as temporary work remains resilient. With the cooling job market, he sees an opportunity for employers willing to recruit amid these economic shifts: “This is a great time to be hiring, because so many talented people are becoming available.” Finally, he echoed calls for another interest rate cut to support both businesses and the broader economy through the difficult period ahead.
