The UK job market continues to see a decline in vacancies, with employers and policymakers increasingly emphasising the need for accurate and timely data to navigate the challenging landscape.
Global talent solutions provider WilsonHCG has raised concerns about the reliability of current labour market data, urging for more up-to-date and real-time insights to aid decision-making.
Recent figures from the Office for National Statistics (ONS), released yesterday, revealed a 14.3 percent drop in job vacancies from June to August 2024 compared to the same period in 2023. While the ONS is in the process of overhauling its Labour Force Survey data collection methods, the ongoing need for revisions highlights the limitations of current data practices. This has sparked a broader discussion about the necessity for alternative data sources that can provide real-time labour market statistics.
Summer holiday slowdown
WilsonHCG’s talent intelligence platform offered a more nuanced perspective, indicating that while job postings in the UK did decline in August, the rate of reduction is slowing. According to the platform, new job postings fell by just 1.9 percent between July and August—a minimal drop, especially given the typical summer holiday slowdown. Also, the six-month average for job postings stood at 671,820, a 5.5 percent increase over August’s figures, signalling some stability in the market.
Kim Pope, Chief Operating Officer at WilsonHCG, offered a more optimistic view of the data. “Although there has been a continued fall in hiring activity, we are starting to experience a slowdown. The usual August recruitment dip due to summer holidays was less severe than in previous months, which is a positive sign for both the labour market and the broader economy,” she explained.
Data issues
Pope also pointed out the challenges created by outdated or frequently revised labour market data. “Much of the data informing business and economic decisions is either out of date or under constant review. While it’s encouraging that the ONS is addressing these issues, alternative data sources can provide faster and more accurate insights. We see similar issues in the US, where the Bureau of Labor Statistics also faces regular revisions. In such a fluid environment, access to real-time information is crucial for businesses and governments looking to formulate effective strategies.”
As global economies grapple with ongoing uncertainty, the call for better data solutions is becoming louder. Employers and policymakers alike are urging for improvements in the availability of accurate, up-to-the-minute information to help steer economic recovery efforts.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
