Responding to latest official labour market statistics, showing
there were 261,000 more individuals in employment compared with a
year earlier, Tej Parikh, Senior Economist at the Institute of
Directors, said:
“Despite a slight slowdown in pace, the ability of UK businesses
to create jobs continues to defy expectations. Combining this
with wage growth is no mean feat, the slight pickup this month is
positive but it remains to be seen how long this can be
sustained.
“Businesses are now in heated competition for skills. Vacancies
are at an all-time high, and recruiters are finding it
increasingly difficult to match available workers with job
descriptions. In these circumstances, we would normally expect
significant increases to salaries as firms attempt to attract the
talent they need, but high costs and subdued productivity growth
have impeded this somewhat.
“On the one hand, soaring business rates and the cost of
complying with a raft of regulations are squeezing margins,
particularly in smaller businesses which employ the lion’s share
of our workforce. On the other, the investments that would enable
businesses to get more from their staff and pay higher wages have
been held back amidst an uncertain economic climate.
“With the Autumn Budget on the horizon, the Chancellor must look
to provide support for business costs while incentivising
investment.”
