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The National Institute’s Associate Research Director Dr Heather Rolfe yesterday reacted to the latest ONS UK Labour Market Statistics.

The National Institute’s Associate Research Director Dr Heather Rolfe yesterday said: “The latest labour market statistics, out today, show an interesting picture of an increase in both employment and unemployment in the three months to January 2018: Over 75% of people aged 16 to 64 were in work, the equal highest since records began in 1971. The rate of unemployment is now also the joint lowest ever, but the number of unemployed people has increased. These figures indicate that, in the face of recruitment difficulties, including as a result of a large fall in net migration of EU citizens, employers are hiring people who have not been actively seeking work. This might be seen as a positive sign, but this pool is likely to be limited”

She added: “Our recent research on the impact of reforms to welfare to work suggests that some disadvantaged groups are not getting the support they need to move into work, yet they could play a key role in meeting some current and future labour shortages.” ​

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