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. In the UK, Brexit is now a major factor in any economic and labour market developments.

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.

This factsheet was last updated by Gerwyn Davies.

Gerwyn Davies

Gerwyn Davies: Labour Market Adviser

Gerwyn is the CIPD’s Public Policy Adviser for a wide range of labour market issues. With lead responsibility for welfare reform, migration and zero-hour contracts at the CIPD, Gerwyn has led and shaped the policy debate and achieved substantial national media coverage through various publications. These include Zero-hours contracts: myth and reality (2013) and The growth of EU labour: assessing the impact on the UK labour market (2014). 

In addition Gerwyn authors the CIPD's high profile and influential quarterly Labour Market Outlook. Gerwyn is an experienced labour market commentator, making regular appearances in the national media and on other public platforms, including several appearances before the House of Commons Work and Pensions select committee.

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