Labour market overview – October 2022

The CBI have shared the following report.

The latest ONS data cover the period from June to August 2022 and show a labour market that is continuing to tighten, with the employment rate decreasing, unemployment decreasing, economic inactivity rising sharply and vacancies falling for the third quarter in a row. Real time Pay-As-You-Earn data for September 2022 showed that the number of payrolled employees increased, up by 69,000 to a record 29.7 million.

Furthermore, real regular pay growth is still in negative territory, with the three-month average close to the lowest it has been since records began at -2.9%. Skills and labour shortages and high vacancies are putting a break on growth and business investment, while inflation remains very high. To go for growth and build a higher-wage economy the government should create the conditions for higher business investment. Immediately updating the Shortage Occupations List and reforming the Apprenticeship Levy to unlock business investment in the full range of skills the economy needs should be the starting point.

Download the full Labour Market Update here.