16 May 2018

  |  CBI Updates Team

News

CBI/Pertemps labour market update May 2018

ONS release paints a healthier picture of the UK labour market in May, as nominal and real pay continue to modestly increase.

CBI/Pertemps labour market update May 2018

CBI/Pertemps labour market update May 2018

 

This is a welcome development after a year in which wage growth has not kept pace with inflation. However, further wage rises can only be sustained if productivity increases.

Employment remains at a record high, with growth similar to the relatively strong rates seen over most of 2017, bringing the employment rate back to a joint record high (since 1971).

Unemployment decreased, returning the rate to a 42-year low. A very small margin of slack in the labour market remains among those who would prefer to work longer hours or in permanent employment.

A sustained period of real wage growth is needed to recover the real value lost over the last year.

Looking across the UK’s regions and nations, most have experienced a significant improvement in employment while unemployment levels have remained broadly unchanged.