The Labour Market Outlook provides a quarterly update on key HR, economic and labour market statistics. The aim of the survey is to produce an industry-valued benchmark of key HR statistics that can be used by members, employers and government. The survey is based on responses from 1,013 employers, many of whom are drawn from the CIPD’s membership of more than 130,000 professionals.
"Overall, in a continuation of recent trends, the data suggest that the labour market
will continue to strengthen in the second quarter of 2015, but with
more modest wage growth than three months ago."
- The net employment balance, measures the difference between the proportion of employers who expect to increase staff levels and those who expect to decrease them, is at +25, increased from +24 in the previous quarter's report.
- Private sector firms continue to drive much of the predicted growth in employment prospects (+37) in Q2, with over half planning to increase their workforce in that period. Employment confidence has risen from +28 to +51 in the manufacturing and production sector in the last quarter, but fallen in the services sector from +38 to +31.
- Basic pay is expected to grow by just 1.8% in the coming year, down from 2% in the previous quarter.
- The two key reasons employers give for not being able to meet the Bank of England's inflation rate target of 2% in their pay awards are public sector pay restraint (41%) and affordability (32%). Other reasons commonly cited by private sector employers include having no recruitment or retention pressures (25%), the National Minimum Wage (20%) and the low rate of inflation/cost of living (15%).