Anthony Painter, Director of Policy at Chartered Management Institute responds:
A high employment rate - though still below pre-pandemic levels - shows resilience in the labour market yet early signs of an economic storm can also be seen in today’s figures.
The labour market remains extremely tight and today’s figures underline the pressures organisations face when looking to attract and retain talent. Wage inflation continues to rise, but basic pay is falling short of cost of living increases.Cost pressures on business are beginning to bite. The cost of living crisis might well reduce consumer confidence and slow spending - in turn leaving businesses with sluggish sales and a more cautionary attitude to hiring. Higher wage and national insurance bills will cut into profits and dampen investment levels.
Managers and business leaders can help ride this potential downturn through more imaginative packages for their employees. Now is the time to think about how firms can attract and retain workers. Salaries are important but, as our research has shown, good, flexible working conditions are also on employees' minds - thinking creatively right now is more important than many may think.
The labour market remains extremely competitive and today’s figures underline the pressures organisations face when looking to attract and retain talent. Wage inflation continues to rise, but behind the cost of living and as clouds gather on the economic horizon it is likely pay packets will be squeezed further.
There are grounds to suspect a perfect storm is gathering. Today’s figures have begun to reflect the impact that recent tax changes will have on both consumers and bosses. Inflationary pressures and the cost of living crisis might well reduce consumer confidence and slow spending - in turn leaving businesses with sluggish sales and a more cautionary attitude to hiring and growing. Higher wage and national insurance bills will cut into profits and dampen investment levels.
Managers and business leaders can help ride this potential downturn through more imaginative packages for their employees. Now is the time to think about how firms can attract and retain the workers they will need to survive. Salaries are important but, as our research has shown, good, flexible working conditions are higher on employees' minds - thinking creatively right now is more important than many may think.
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