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CBI yesterday responded to latest Labour Market statistics – July 2024.

Matthew Percival, Future of Work Director, CBI, said:

“While pay growth remaining strong owing to the difficulties employers face when hiring provides some short-term relief to consumers, there are tentative signs of pay growth easing as the labour market continues to cool and expectations for inflation are falling. 

“Pay growth remaining relatively strong is a reminder that the Employment Rights Bill comes at a time that business already face significant employment cost pressures that are weighing on investment and pushing up prices.

“Businesses have a strong incentive to invest in productivity but the cost pressures they face are squeezing their budgets to do so. The government will need to carefully monitor the extent to which this makes delivering economic growth harder.”