In the UK, the job market is continuing to experience a decline. Employers and policymakers are increasingly highlighting the importance of accurate and timely information to navigate this challenging landscape.
WilsonHCG, a global talent solutions provider, has expressed concerns over the accuracy of labour market data. They have called for real-time and more current insights to help with decision making.
Office for National Statistics figures released yesterday showed a drop of 14.3 percent in the number of job vacancies between June and August 2024, compared with the same period in the year 2023. The ONS is currently overhauling the methods of collecting data for the Labour Force Survey, but the need to revise the data continues. This has led to a wider discussion on the need for alternative data sources which can provide real-time statistics about labour markets.
Summer holiday slowdown
WilsonHCG’s talent intelligence platform provided a nuanced view, showing that, while UK job postings did decrease in August, their rate is decreasing. According to the platform’s data, the number of new job postings dropped by only 1.9 percent from July to August. This is a small drop, particularly given the usual summer slowdown. The six-month average of job postings was 671,820. This is a 5.5 % increase from August’s figures.
Kim Pope, Chief Operations Officer at WilsonHCG offered a more positive view of the statistics. “Although hiring has continued to fall, we’re starting to see a slowdown. She explained that the usual August dip in recruitment due to the summer holidays was not as severe as previous months. This is a good sign for the labour market, and also the economy.
Data Issues
Pope also highlighted the challenges caused by outdated or often revised labour market statistics. Many of the economic and business decisions are based on outdated data or constantly revised. It’s good to see that the ONS has addressed these issues. However, other data sources may provide more accurate and faster insights. In the US, the Bureau of Labor Statistics is also subject to regular revisions. Businesses and governments need to be able to access real-time data in such an environment.
The need for better data solutions grows as global economies struggle with uncertainty. Employers and policymakers are calling for improved access to accurate, current information that can help guide economic recovery efforts.
