CBI responds to latest Labour Market statistics

Matthew Percival, Director of People and Skills, said: 

“The cause of record wage growth is contested, with some believing that it is caused by shortages and others that it is employers trying to help employees with the cost of living. But what will matter to the Bank of England when setting interest rates is that these increases are being funded by higher prices, not productivity. Breaking this cycle requires action by government, not just higher interest rates. Steps like urgently completing the review of the Shortage Occupations List in the immigration system will ease the most acute shortages. An ambitious tax roadmap is also key to unlocking business investment in people, innovation and capital. Meanwhile, businesses must continue to focus on increasing flexible working to get more people into work.”