Rising employment highlights merit of flexible labour market
The CBI commented on the latest ONS labour market data for the three months to March 2017, which show employment has increased by 122,000 and unemployment fell by 53,000.
The ONS publishes monthly labour market bulletins providing estimates of employment, unemployment, economic inactivity and other employment-related statistics for the UK.
Responding to the latest data, Alpesh Paleja, CBI Principal Economist, said:
“Rising employment continues to reinforce the importance of the UK’s flexible labour market.
“However, weakening productivity and slower pay growth, coupled with rising inflation, will continue to squeeze real household earnings.
“Therefore maintaining the UK’s reputation as a great place to do business, for example by increasing R&D spend to 3% of GDP by 2025, will help boost the UK’s productivity. This is the only sustainable route to higher wages, and better living standards.”