Labour market cools

Paul Butterworth, CEO at Chambers Wales South East, South West and Mid, said: 

“With the number of vacancies falling for the 18^th time in a row and minimal changes in the employment and unemployment rates, it is clear that the labour market is beginning to stall.

“Our Chamber’s Quarterly Economic Survey for Q4 of 2023 found that almost two thirds of businesses in Wales experienced difficulties finding suitable staff, especially for skilled manual and technical, professional and managerial roles. This, combined with the latest Quarterly Recruitment Outlook research by the British Chambers of Commerce, shows that the recruitment landscape is an ongoing challenge for businesses. Until there is wider economic certainty, employers and potential candidates are acting very cautiously.

“The skills shortage in particular is a source of huge frustration to businesses who have ambitions to grow as they struggle to recruit suitable staff and are hesitant to invest further in training amid tough economic conditions. In Q4 of 2023, only 16% of businesses in Wales increased their investment in training. Business in Wales would welcome a long-term strategy on skills, training and development to help resolve their hiring difficulties.”