Vacancies fall but firms still struggling to access skilled talent – Chamber

Labour costs remain the biggest cost pressure on businesses despite new figures showing a decline in vacancies, business leaders said today.

Latest figures from the Office for National Statistics (ONS) revealed UK job vacancies were down 9,000 to 819,000 in the three months to January.

The ONS estimated that the number of UK workers on payrolls rose by 21,000 during January to 30.4 million.

This followed a 14,000 drop in December.

Meanwhile, in the West Midlands, employment rose by 0.5 per cent to 74.3 per cent between October 2024 and December 2024.

And unemployment fell by 0.3 per cent to 4.3 per cent in the same three-month period.

Compared to the same period last year, West Midlands employment is up by 0.6 per cent but unemployment has also risen, by 0.3 per cent.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “It’s encouraging to see a rise in employment levels and a decline in unfilled vacancies across the West Midlands.

“However, many Greater Birmingham firms are still struggling to access the skilled talent they need to fulfil existing orders and drive growth – something highlighted by our most recent Quarterly Business Report. Two thirds of firms faced difficulties filling vacancies at the end of last year. 

“Meanwhile, labour costs continue to be the most prevalent source of cost pressures for local businesses, and this will be exacerbated imminent increases in employment costs, driven by National Insurance and National Living Wage rises announced in the Autumn Budget. 

“There is a limit to the additional costs business can absorb. To drive economic growth, the Government must do all it can to minimise costs for firms and ensure they have access to a skilled and healthy workforce.”

• The GBCC’s latest Quarterly Business Report survey is live. Tell us how business is going this quarter and be in with a chance of winning a meal for two and a bottle of wine at Birmingham restaurant Tattu (terms and conditions apply).

In this quarter’s survey, we’re also partnering with Netcom Training to investigate digital skills gaps within the West Midlands as part of a new research project: Mastering the Future with Digital Skills.