“This image reflects a job market poised for a catalyst. Currently, employers are treading water, with employment rates lagging 2020 levels, high inactivity, and vacancies still exceeding pre-pandemic figures. But pay growth is providing enough calm water for the Bank to feel confident about going a bit further with interest rate reductions.
“Employers are eager to get back to business now that the General Election is behind us and there’s more clarity on the Employment Rights Bill and the Industrial Strategy. The upcoming Budget is critical in this context. A stronger sense of confidence in economic recovery will encourage employers to start hiring and investing again.”
