CBI: Labour market overview

The CBI have shared the following.

Pay growth continues to fall amid worsening cost of living crisis - read the key findings from the ONS covering employment, unemployment, economic inactivity, pay and hours worked data.

The latest ONS data cover the period from July to September 2022 and show a labour market that remains tight, with the employment rate decreasing, unemployment decreasing, economic inactivity rising sharply and vacancies falling for the fourth quarter in a row. Real time Pay-As-You-Earn data for October 2022 showed that the number of pay-rolled employees increased, up by 74,000 to a record 29.8 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 -2.7%. Skills and labour shortages and high vacancies are putting a break on growth and business investment. Labour market resilience is a precondition to growth, and with a record number of people economically inactive due to long-term sick, UK’s productivity and economic growth are being restricted.

Download the full Labour Market Update to find out:

• The impact of COVID-19 on the overall health of the UK labour market
• How wage growth and productivity are developing in different sectors as well as the UK overall
• Where labour shortages are most acute in different sectors and regions