Positive real wage growth gives workers a chance to claw back some of the purchasing power lost during high inflation

Responding to today's ONS labour market figures, Jon Boys, senior labour market economist for the CIPD, the professional body for HR and people development, comments:

"With unemployment up and employment down,today'sstatistics show a cooling labour market. Other evidence of cooling includes the continued fall in vacancies, and anuptick in the redundancy rate.Taken together, this will ease pressure on recruitment and retention.It may also lead to the Bank of England cutting the base rate sooner.

"Falling inflation means robust real regularpay growth of 1.9%,unseen since the post pandemicbounce backtwo and half years ago.If real wage growth can remain positive,workers couldstart to claw back some of the purchasing power lost in recent times.

"Inactivity rosethis quarter.Since the pandemicthe long-term sick have become an increasingly large componentof the totalinactive.A tight labour market has kept a focus on inactivity as government and business soughtto boost labour supply amidst skills shortages.As the labour market cools this focus might lessen, but it mustn't.Employers can make reasonable adjustments and invest in occupational health.Not only to facilitatepeople who are inactive back into work, but to future-proof their workforces by helping people to stay in work.Approximately halfof peopleof working agewith a long-termhealth conditionare still in work, showing that appropriate measurescan help both individuals and organisations be resilient."

Notes to editors

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