Labour shortage a huge drag on economic growth

affect households across the UK, according to new figures released by the Office for National Statistics.

The ONS said a record number of people moved out of “economic inactivity”, defined as people not looking for work, between July and December last year, as more people got jobs.

The most active age groups moving out of economic inactivity were in the 16-24 age group and the 50-64 age group.

Although the ONS figures show a rise in people moving out of economic inactivity, the British Chamber of Commerce argues that businesses are still “crying out for people to fill job vacancies at all skill levels” with 1.134 million vacancies and has urged the government to make this their priority.

The latest ONS Labour Market figures have revealed that in the three months ending in December 2022, the highest unemployment rate estimates in the UK were in the North East and London (4.5%), with the lowest in the South West (2.1%).

In the same time scale, the figures show that the highest employment rate estimates in the UK are in the South West (80.3%).