17 August 2016

News

CBI/Pertemps Labour Market Update August 2016

Ahead of the referendum, employment continued to grow and unemployment dropped.

Read the CBI/Pertemps Labour Market Update here.

CBI/Pertemps Labour Market Update August 2016

Today’s data published by the Office for National Statistics suggests that, ahead of  Britain’s vote to leave the EU, the UK’s jobs market remained in rude health.

But, vacancies have continued to tick down, continuing the trend since the beginning of the year, and prospects for the labour market are now more uncertain

In the three months to June, employment rose on the previous quarter, and the employment rate reached another record high of 74.5%.

Unemployment fell over the quarter to 4.9% and is at its lowest level since early 2008. The claimant count also fell in July—the first monthly fall since February.

For those in work, pay growth remained relatively subdued over the three-month period.  While real pay growth picked up slightly, this is likely to be eroded more quickly going forward following the sharp depreciation in sterling and the consequent higher path for inflation as well as the weaker economic outlook.