Four key takeaways from Cendex Economic, pay and labour market update

Reward involves designing and implementing strategies that ensure that your employees are rewarded in line with your organization’s context and culture, while keeping the external market environment in sight.

When employers make decisions about recruitment and retention, they need to consider the supply-side aspects to the equation: what is the current state of the labour market and how is that likely to impact resourcing? The information below summarises the current state of the UK labour market.

Key takeaways

1. UK economy holds off a recession

2. Labour market shows first signs of easing

3. Pay awards rise but still fall short of inflations first signs of easing

4. Consumer confidence shows sustained low

The full report is available here.

The UK’s tight labour market is one of the top challenges preventing our businesses and economy from growing. If firms can’t hire the staff to fulfil their order books, any room for growth is extremely limited. Businesses need to play their part, by engaging with local skills and employment opportunities, adopting flexible working policies where possible and helping older workers develop their skills for the changing workforce.

David Bharier, head of research at the British Chambers of Commerce (BCC)