UK labour market hits the pause button

Commenting on the latest UK Labour Market Statistics, Mark Beatson, Chief Economist at the CIPD, said: “While today’s numbers show a drop in unemployment back towards the low point seen three months ago, the main point to draw from this set of figures is how little the overall levels of employment and unemployment have changed in the last six months. After a long period of sustained employment growth and falling unemployment, we seem to have entered a more stable phase. The numbers of self-employed and those in temporary jobs appear to have peaked.

“As the economy was still growing strongly in the second quarter of 2015, stable employment levels suggest that productivity has been growing. If this is the case, it helps to make average earnings growth sustainable. The latest figures have been boosted by earnings in construction and by bonuses, especially in financial services, both consistent with a growing economy. With interest rates expected to remain very low, employers should continue to invest in technology, systems and workforce skills if they wish to avoid the prospect of increased skill shortages.”  

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