“These figures confirm that the UK’s labour market headed into this energy crisis in a fragile state, as a stagnating economy and skyrocketing staffing costs continue to compel businesses to curb recruitment and limit salary settlements.
“This slowdown in earnings growth will likely gain impetus in the coming months as the growing financial squeeze on firms from surging energy costs further restricts pay rises, despite upward pressure from next month’s minimum wage increase.
“The UK’s jobs market is painfully exposed to the fallout from the Iran war as hiring intentions already weakened by soaring labour costs will likely deteriorate further as higher energy bills start to bite, pushing unemployment close to 6%.
“An interest rate hold at midday looks nailed on and with this energy crisis likely to drive a decisively hawkish shift to the vote split among policymakers, the likelihood of a rate cut anytime soon is increasingly remote.”
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Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 210,000 members and students around the world. 98 of the top 100 global brands employ ICAEW Chartered Accountants.* 87% of FTSE 100 companies, and 81% of FTSE 250 companies in the UK, have an ICAEW member on their board.
Founded in 1880, ICAEW has a long history of serving the public interest and we continue to work with governments, regulators and business leaders globally. And, as a world-leading improvement regulator, we supervise and monitor around 11,000 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.
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We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.
* includes parent companies. Source: ICAEW member data March 2025, Interbrand, Best Global Brands 2024.
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