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Lagging pay leaves workers facing Christmas squeeze - CIPD

Responding to the latest ONS labour market figures, Ian Brinkley, Acting Chief Economist at the CIPD, the professional body for HR and people development said:

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“The latest figures again show the subdued pay outlook across the economy, with a 2.2% increase continuing to lag behind inflation. With no end in sight to this squeeze on living standards, many workers will be facing a Christmas period where they will once again be required to tighten their belts. There is little to suggest that wages are responding to low unemployment and higher inflation.

“While the headline employment figure remains strong, there are some signs that the UK labour market may be slowing down in terms of job creation. The rise in employment is mostly down to part-time self-employment, which suggests much of the increase is around marginal work and an increase in temporary jobs. We will have to wait and see if this initial sign becomes a trend, but if it does the UK economy faces a potentially potent mix of falling pay and a stagnant labour market.”