15 August 2018

  |  CBI Updates Team

News

CBI/Pertemps labour market update August 2018

The ONS’ latest labour market data paints a familiar picture —strong employment growth and falling unemployment.

CBI/Pertemps labour market update August 2018

CBI/Pertemps labour market update August 2018

This continuous job creation shows that flexibility in the labour market is a key strength for the UK economy. However, these figures also show that the size of the UK workforce is shrinking at the same time as vacancies for skills and labour grow.

Employment remains at a record high, with growth similar to the relatively strong rates seen over most of 2017.

Unemployment decreased once again and is now at 4%, the joint lowest rate since 1975. At the same time the inactivity rate rises for the first time this year.

However, the performance of the labour market has not been matched by stronger and more sustained real wage growth. Instead, pay growth has remained at a six-month low putting pressure on people’s living standards.

The UK’s regions and nations have seen a mixed picture in employment while unemployment levels have remained broadly unchanged.

UK employment by nationality sees a record annual drop in EU nationals which could point in the direction of a further increase in shortages that are already hampering firms’ ability to compete and create jobs, so it’s vital that the UK pursues an open and controlled post-Brexit immigration policy.

The Government needs to guarantee that EU workers can continue to work even in a ‘no deal’ scenario. And putting migration and mobility on the table when negotiating a new relationship with the EU will help secure the best deal for the UK while ensuring companies can access the people and skills they need to succeed.