Commenting on the Labour Market Statistics for March to May 2014 released today by the Office for National Statistics (ONS), Mark Beatson, chief economist at the CIPD, comments:
“This latest set of statistics highlight a continuation of the recent pattern of strong employment growth, especially for young people, and very low pay growth. However, with the growth in employment driven by self-employed people, especially among the part-time self-employed, this period might herald a modest slowdown in hiring activity compared with the recent past.
“The latest wage growth figures could be an unusually low one-off but, even if they are, they remind us that there are no signs of pay pressures building up in the official figures. This should not come as a surprise when labour productivity growth is flat and when the government’s welfare reforms, the availability of EU migrants and the latent supply from the under-employed mean we have strong growth in labour supply. It is very difficult to see therefore where the pick-up in wages growth will come from.”