PwC comments on September's ONS labour market data

Rob Clarry, economist at PwC comments on today's labour market data: 

“September marked another positive month for the UK labour market. The number of payrolled employees reached a record high of over 29 million, exceeding the pre-pandemic level for the first time. And demand for employees remained elevated with a record 1.2 million job vacancies open.  

“However, with the furlough scheme winding down at the end of September, the labour market now faces its sternest test since the start of the pandemic. We expect to see a period of adjustment as workers made unemployed either enter sectors experiencing high demand for labour, such as transport and construction, or retrain to pursue new vocations.

"The gradual increase in the supply of available workers should also soften wage growth over the coming months, as people move into the sectors which are running hot. This could provide some welcome respite for the transport sector, which recorded a 56% increase in the number of vacancies open over the last 3 months.”