“These figures further emphasise the need to tackle inflation and its effects on companies and workers. Private sector pay is growing at a robust pace – but increases are being eaten up by the current inflation rate.
“The overall picture is still positive for those looking for work or to change jobs to raise their pay. Unemployment is low and stable, and while the number of vacancies seems to have peaked, there are still almost 1.3 million of them available.
“But firms are struggling with staff shortages, and that will constrain growth and drive inflation. Employment is still much lower than pre-pandemic, while the number of people out of work and not looking for a job is much higher. Firms need to think carefully about their offer to potential staff in this environment, working with their recruiter. It’s clear that flexible forms of employment have a big role to play in closing the gap.
“There is a role for government too – measures to support a sustainable labour market for the long term, for example on skills, immigration, childcare costs and local transport are all part of the solution.”