15 April 2025 | 2 min read
Jeanette Wheeler, Chief People Officer at MHR said;
“The latest ONS figures reveal a mixed picture, but one thing is clear – businesses are still facing an uphill struggle as they navigate an uncertain global market. The employment rate for people aged 16 to 64 has slightly increased to 75.1% for December 2024 to February 2025. This means more people are working, easing some concerns over prolonged economic inactivity. However, the unemployment rate for those aged 16 and over remains at 4.4%. While this hasn’t seen much change over the latest quarter, it is still higher than it was a year ago. Meanwhile, the economic inactivity rate for those aged 16 to 64 has fallen to 21.4%, suggesting that more people are returning to work even if unemployment numbers don’t show this similar improvement.
“There is also a continued decline in job vacancies. The latest quarter saw a drop of 26,000 vacancies, marking a 33rd consecutive quarterly decline, indicating that employers are remaining extremely cautious about hiring amongst economic uncertainty. This is coupled with research released from the Institute of Chartered Accountants in England and Wales (ICAEW) today finding that UK business confidence has fallen to the lowest level for more than two years, amid growing concern over tax rises.
“Adding to the challenges, the ONS has estimated 52,000 working days were lost in February 2025 because of labour disputes. The UK is facing productivity declines, falling business confidence, and slower performance. Looking ahead, the government must prioritise support for businesses as the workforce starts to feel the impact of rising employer National Insurance Contributions. Now is the time to build back confidence if the government wants to achieve its aim of growing the economy.”
