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Underlying labour market remains strong despite weak employment growth, says CIPD

Commenting in response to the latest labour market statistics from the ONS, Ian Brinkley, acting chief economist at the CIPD, said:

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CIPD

“The underlying state of the labour market remains strong despite unusually weak employment growth and the consequent small rise in unemployment. 

“There was a significant increase in full time and permanent employment, largely offset by falling self-employment, temporary and part time work.  Regular pay strengthened slightly and, with inflation falling, real pay growth has strengthened significantly.

“The slight rise in unemployment is partly explained by more people of working age entering the labour market and actively looking for work than in the past. However, if future employment growth continues to fall short of the increase in job seekers, then further modest rises in unemployment can be expected. 

“Much will depend on whether the current economic and business uncertainty over Brexit and the world economy can be reduced in the coming months.

“Employers can expect to face continued recruitment and retention pressures and need to prioritise workforce planning.”