CBI responds to latest Labour Market statistics

Matthew Percival, CBI Director for the Future of Work and Skills, said:

“Pay rising faster than inflation for the first time in almost two years will be welcome relief to households struggling with the cost of living crisis, but the widening gulf between pay and productivity will add to the Bank of England's headache.

“Bringing inflation down requires a wider policy response than just raising interest rates, with action needed to boost business investment and productivity, and to ease the most acute labour shortages. Empowering firms to invest more in people, innovation and capital, requires a review of the UK’s tax system – with an ambitious tax roadmap to provide certainty and clarity. While steps to boost labour supply by expanding childcare will help, renewed focus is required to bring down record high sickness absence.”