Commenting on this morning’s release of labour market statistics that showed an increase in the economic inactivity rate in the three months to March 2024, Alexandra Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said:

“With another fall in vacancies and a small increase in the unemployment rate, there are signs of the labour market easing.

“However, the rise in economic inactivity over both the quarter and the year is a worrying development for businesses, given its potential to exacerbate persistent skills and labour shortages in the UK. The ongoing expansion of government-funded childcare is a welcome step to increasing labour market participation, but more action from government is urgently needed to increase domestic labour supply.”