Responding to today’s ONS labour market figures, James Cockett, senior labour market economist for the CIPD, the professional body for HR and people development, comments:
“Today’s figures show high wage growth continues to be a mainstay in the economy. Pay growth has risen once again, driven by the private sector. Looking ahead, the pay growth picture remains difficult to predict as while the labour market is loosening, public sector pay rises towards the end of last year are yet to make their way through the system.
“Firms unable to absorb cost increases announced in the Budget may have no choice but to raise prices this year which is likely to have inflationary impacts and feed into ongoing wage growth.
“With vacancies falling and unemployment continuing to edge up even before the impact of the increases to employer National Insurance contributions have taken effect, 2025 is likely to be a challenging year for many job seekers.
“It's crucial that the Government consults fully on measures to be introduced in the Employment Rights Bill to ensure they don’t reduce future job opportunities, particularly for young people and other candidates viewed as higher risk by employers.”
