13 June 2023

The Office for National Statistics (ONS) has released the labour market overview for June 2023. These releases are chock full of information, but if you dive in there are some interesting points to note for the payroll profession.

Here are some of the headline statistics you may be curious about:

  • the employment rate (16-64) is at 76%, with increases to both employed and self-employed workers
  • since last month, payrolled employees across the UK have been over 30 million
  • wage growth of employees was 7.2%
  • in real terms, this still means a fall of 1.3%
  • 257,000 working days were lost because of labour disputes in April

With the news of wage growth being reasonably high, this brings into question the upcoming Bank of England decision regarding interest rates. Wage growth can have an impact on prices, which can cause inflation and therefore impacts interest rates. The decision from the bank’s Monetary Policy Committee (MPC) is due on 22 June 2023.

The policy team will be paying attention to the announcement and the MPC’s comments regarding future increases. If inflation is not brought into control in a managed way, the future of the labour market will be uncertain for some time.

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