Wage growth slows and unemployment falls, latest official figures show

Responding to today’s ONS labour market figures, James Cockett, senior labour market economist for the CIPD, the professional body for HR and people development, comments:

“Today’s labour market figures show that pay growth remains high despite slower growth being recorded than in previous months. This quarter unemployment has unexpectedly fallen, which could put further pressure on wages. Vacancies have now fallen for 25 consecutive months yet remain above pre-pandemic levels as many employers continue to have difficulties in recruiting. Together, these figures highlight the importance of the Government consulting closely with the business community to ensure that planned changes to workers' rights don’t undermine the flexibility of the labour market and employment opportunities for workers.

“Policymakers will have been awaiting the figures with a keen interest as the labour market is a key priority for the new government as outlined in its Plan to Make Work Pay’. Equally, there is an important role for government to help more people get into work. Falling unemployment is a step in the right direction. Sustaining this progress will require employers to support the long-term unemployed and inactive by offering training and flexibility. Workplace adjustments are required to ensure those with health conditions can return to and stay in work.”