“The UK’s jobs market is continuing to come apart at the seams as the stifling squeeze from spiralling labour costs pushes more businesses to pivot from simply freezing recruitment to actively cutting jobs.
“This slackening in pay growth is likely to gather momentum in the coming months as the downward pressure from mounting lay-offs and higher employment costs increasingly weakens workers’ bargaining position.
“The UK’s labour market will probably face more agony in the year ahead with elevated staffing costs and worries over the impact of the Employment Rights Act likely to lift unemployment uneasily higher.
“Though these discouraging figures mean that another interest rate cut is edging closer, the pace at which the jobs market is currently receding may not be enough to induce rate-setters into reducing policy next month.”
ENDS
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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.
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* includes parent companies. Source: ICAEW member data March 2025, Interbrand, Best Global Brands 2024.
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