Employer-friendly Budget needed as pay growth slows

Responding to today’s ONS labour market figures, James Cockett, senior labour market economist for the CIPD, the professional body for HR and people development, comments:

“Today’s figures show a continued slowdown in pay growth, as employers tighten their purse strings. Whilst many of the measures announced in the Employment Rights Bill are pro-worker, employers will be seeking a Budget that can boost business confidence and set out measures to support hiring and increase investment in workforce skills. 
 
“The labour market remains strong overall, with falling unemployment and rising employment. However, it will be important to ensure that changes to unfair dismissal rules announced in the Employment Rights Bill don’t increase the cost and risk of hiring permanent staff or undermine the prospects of groups such as young people who might need more support or training when they start work. 
 
“Tackling economic inactivity continues to be on the government’s priority list, with the number of people not working due to ill health remaining high. It’s crucial the government continues the focus on improving access to occupational health services which, together with plans to reform Statutory Sick Pay, can help support more people to stay in work.”