Labour squeeze shows no signs of loosening before Christmas

The ongoing labour squeeze shows no signs of loosening in the run up to Christmas, raising fresh concerns that usual festive activities could be scuppered.

In the first week of this month alone, over 220,000 new job ads were posted in the UK, a historically high print since records began, according to the Recruitment and Employment Confederation (REC), who compile the data.

The jump in new job postings swelled the total stock of active open roles to 2.68m, the highest ever.

The seasonal boost in hiring activity in the lead up to Christmas, largely driven by retail and hospitality firms taking on part-time workers, is likely to have lifted new job posting volumes.

The fresh figures underline the scale of worker shortages embedded across the UK, the size and persistence of which is threatening to derail the economic recovery.

The Office for National Statistics (ONS) said yesterday economic growth slowed over the three months to September, dipping to 1.3 per cent from 5.5 per cent in the previous quarter.

Worker shortages have crimped activity in several sectors, most notably at logistics firms who have struggled to deliver normal services due to a sharp reduction in HGV drivers.

The REC’s research found driving instructors, prison officers and fork-lift truck drivers were the most sought after workers. Demand for construction workers pulled back sharply.

Neil Carberry, chief executive of the REC, said: “While roles in logistics and care are in high demand, the construction sector saw a drop-off last week as supply issues constrained the industry’s ability to work to capacity.”

London’s jobs market is missing out on the broader UK recovery, with job postings shrinking 0.1 per cent over the last week, according to the REC.

Adverts in Barnet and Croydon shrank 7.9 per cent and 2.3 per cent respectively.