“Weakening wage growth is a mixed blessing because while it may help prevent interest rate rises, it will also suppress consumer spending – a vital source of economic growth – particularly given the financial squeeze from surging fuel costs.
“The Iran conflict will soon pull the UK’s labour market into more troubled waters with skyrocketing energy costs and weaker customer demand amid heightened uncertainty likely to push unemployment uncomfortably close to 6%, especially given elevated employment costs.
“These underwhelming figures can help keep rates on hold by giving rate-setters hope that a faltering labour market will keep a lid on inflation by eroding workers’ bargaining power on pay and squeezing demand in the wider economy.”
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.
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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