ONS: Real pay continues to fall

This marks the 17^th consecutive month in which real pay (pay adjusted for inflation) has fallen, as the cost-of-living crisis continues to bite into the finances of UK households.

Meanwhile, the employment rate was estimated at 75.9% in January to March 2023, 0.2% higher than October to December 2022.

According to the report, the increase in employment over the latest three-month period was driven by part-time employees and self-employed workers.

This left the unemployment rate at 3.9%, increasing by 0.1% from January to March 2023.

The increase in unemployment was largely driven by people unemployed for over 12 months.

Responding to today’s ONS labour market figures, Jonathan Boys, labour market economist for the CIPD comments: “The fundamental dynamics of the post-pandemic labour market remain unchanged. Unemployment is low at 3.9% and the Bank of England expect it to rise only modestly in the coming years.

“The workforce remains smaller than pre-pandemic so the supply of candidates is restricted meaning recruitment issues will persist. Employers must think creatively about how they attract staff and consider all areas of job quality, not just pay, which continues to struggle to keep up with inflation.

“The pandemic has left a lasting mark on the UK’s labour market, with a shrinking workforce and a mismatch of skills and demand. Employers need to offer more than just higher wages to attract and retain staff.”