Pay growth continues to fall amid worsening cost of living crisis - read the key findings from the ONS covering employment, unemployment, economic inactivity, pay and hours worked data.
The latest ONS data covers the period from May to July 2022 and shows a labour market that is plateauing, with the employment rate decreasing, unemployment increasing, economic inactivity rising sharply and vacancies falling for the second quarter in a row. Real time Pay-As-You-Earn data for August 2022 showed that the number of payrolled employees increased, up by 71,000 to a record 29.7 million.
Furthermore, real regular pay growth is still in negative territory, with the three-month average close to the lowest it has been since records began at -2.8%. Skills and labour shortages and high vacancies are putting a break on growth and business investment, while inflation still remains very high. This culmination of challenges is putting a strain on households and dampening business optimism for the months ahead. The Government should make the skills and immigration systems responsive to shortages by updating the Shortage Occupations List, the courses eligible as part of the Lifetime Skills Guarantee, and reforming the Apprenticeship Levy to unlock business investment in the full range of skills the economy needs.
Download the full Labour Market Update to find out:
- The impact of COVID-19 on the overall health of the UK labour market
- How wage growth and productivity are developing in different sectors as well as the UK overall
- Where labour shortages are most acute in different sectors and regions
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