UK jobs data: CIPD says time now for skills investment
Official data shows the UK employment rate – the proportion of people aged 16-to-64 years in work – reached 75.7 per cent in June. It is the highest comparable rate since records began in 1971.
Are UK wages rising or falling?
Headline findings also showed a slight year-on-year increase in real wages.Growth was 0.4 per cent excluding bonuses, and by 0.2 per cent including bonuses. Average weekly earnings, not adjusted for price inflation, increased by 2.7 per cent excluding bonuses, and by 2.5 per cent including bonuses, compared with a year earlier.Other news and features from Relocate Global:
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Will the latest jobs data impact the interest rate decision?
Anna Leach, business representative body the CBI's head of economic intelligence, said that while the labour market “continues to confound expectations of a slowdown,” pay growth has slipped to a six-month low. “This leaves the MPC’s decision on a knife-edge when it meets to set interest rates in a couple of weeks’ time.”Ian Brinkley, acting chief economist for the CIPD, the professional body for HR and people development, also pointed out that much of the jobs growth war for part-time work, which saw total hours worked in the economy falling slightly. “The labour market continues to deliver on jobs, but there are a number of underlying weaknesses,” said Mr Brinkley. “It looks as if employers have been coping with recent weak growth by offering more jobs with fewer hours. If and when GDP growth revives later this year, we might expect more full-time employment.“Wage growth – comparing regular pay over the last three months with the same three months of last year – has started to slacken,” continued Mr Brinkley. “Real wages continue to rise, but this owes more to the continued fall in inflation rather than any improvement in wages.“As things stand there appears to be little immediate upward pressure on wages despite growing labour and skill shortages.How can employers respond to the tightening labour market?
Mr Brinkley cautioned employers against being “misled by these short-term signals” on wage growth and employment. “It is still highly likely that labour will become more constrained over the coming years, partly as a result of Brexit,” he said.“So now is the time to start making long-term plans on workforce development and enhanced investment in skills.” For related news and features, visit our dedicated section on HR. Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online Directory©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.