Kent's unemployment figure rises but job vacancies remain high
Published: 16:44, 17 February 2023
Updated: 16:45, 17 February 2023
Job vacancies are high and unemployment rates are up – but Kent employers say they are struggling to recruit.
In the latest data released by the Office of National Statistics (ONS), the number of people without a job rose in December from 36,650 to 37,445 in Kent and Medway.
And preliminary figures for January show an increase in that rate across almost all the county's districts and local authorities.
Despite the increase in Kent, nationally employment rates have remained unchanged although the labour market is showing signs of slowing.
According to ONS, there were 1.134 million job vacancies on average from November to January – down 76,000 on the previous quarter.
This points to the increasing financial pressures employers are facing which is leading businesses to stop hiring new people to fill vacancies.
Chief executive of Kent Invicta Chamber of Commerce – which supports and represents firms across the county – Jo James explained.
"At a time where they are trying to recover after the pandemic, they are facing great, new pressures. If they cannot get people they are going to struggle to evolve and grow.
"It is a very challenging time for businesses at the moment as their overheads continue to rise. It is really coming to a head for many.
"The number of vacancies are lower compared to what they have been but they are still relatively high."
The ONS data also shows the strongest regular pay growth rate in three months, of 6.7%, although wage rises are still not competing with inflation.
This points to yet another economic pressure for firms as they try to meet higher wage demands paired with rising prices.
It means companies which are already struggling to pay their overheads cannot always afford to recruit, meaning vacancies are not filled and unemployment stays high.
Ms James said: "Employers are having to pay more to fill an existing vacancy. If they are paying more to replace someone they then have to look at the differentials.
"Pay is rising fast. It is having to to attract candidates because the expectation is so much more but it is not keeping up with inflation.
"It is not financially sustainable, especially for smaller businesses. Businesses too are facing inflation like they have never before."
Sanjay Raval, owner of City Wall Wine Bar, in Rochester High Street, said he has been struggling to recruit staff as the hospitality industry continues to fight a battle it has not seen before.
The businessman said it is mainly as people either want cash in hand, roles are often minimum wage and he thinks people can earn more on benefits than they can by working.
He said: "It causes issues in the hospitality sector as we deal with waiters and bar staff who are very important to us but are on minimum wage and we cannot afford to pay them more.
"We are struggling as an industry as much as everyone else. We have utilities going up, the cost of living and our suppliers are charging more.
"The only choice we have is to put our prices up but there is only so far you can go. If you go too high you price yourself out of business.
"We are battling as hard as we have ever done to survive and employ the staff we do have and pay their wages."
Yet Ms James said there are things companies can do to help attract a workforce. She said: "It is about skills and businesses do have a part to play here in looking at training.
"Unless you want to pay top dollar and recruit someone with every skill you want, businesses need to look at who is the best fit and who they can train to have the right skills.
"This is becoming key. There is plenty of opportunity. It is about looking at the person rather than the CV."
Operations manager at Best Western The Clifton Hotel in Folkestone, David Lowe, said they do invest in training staff who have no experience and said it is sometimes better.
He added: "As with all jobs you have to start somewhere. It is great to have someone with previous knowledge but they have sometimes picked up bad habits.
"Sometimes it is better to start with a blank canvas. We have one member of staff who has never done hospitality before but has taken to it like a duck to water."
The unemployment figures for December saw increases across Kent except in Ashford, Maidstone, Medway and Tunbridge Wells.
This highest rate in the county remained in Thanet, where 5.7% of those of working age were not in jobs. The borough is followed by Folkestone and Hythe, Gravesham, both at 4%, and Dover at 3.8%.
The lowest was still Sevenoaks with only 2% unemployment. Tonbridge and Malling closely followed with 2.1% and then Tunbridge Wells at 2.2%.
The trend is consistent with November's data and looks to continue into January.
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Alex Langridge