The macro-economic context provides a useful indicator of labour market activity, which in turns shapes the scope of how organisations recruit, retain and develop in line with the wider organisational strategy. By becoming more aware of the various interrelated factors that exist within this dynamic, HR professionals can proactively monitor likely developments and adapt to changes with greater agility.

This factsheet provides an introduction to key economic terms and measures, including economic cycles, economic stability and economic growth and inflation, and how these link to changes in the labour market. It explores the relationship between human resources and the economic context, and highlights the need for HR professionals to understand how the economy works.

CIPD viewpoint

Why understanding the economy matters for HR

Measuring the economy

The economic cycle

Human resources in the labour market

Useful contacts and further reading

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