...we had unemployment this low! Despite the ongoing din caused by Brexit and Referendums we still see the UK economy in a good place. The benefits to number 11 are positive, employed people pay taxes and lower unemployment requires less benefits payments.
However employers need to thinking ahead to the talent consequences, if labour mobility across Europe is more limited and skills shortages continue in areas such as digital then being the destination employer will be more important than ever. Brand building is a long game not a quick solution so starting to build higher engagement now with the talent audiences that are business critical would be wise and minimise future risks.
UK unemployment fell in the three months to January but there was a sharp slowdown in wage growth. The Office for National Statistics (ONS) said the unemployment rate fell to 4.7% - it has not been lower than that since the summer of 1975. However, wage growth has slowed to 2.3% (excluding bonuses) from 2.6% in the previous three-month period. Wages are rising above the rate of inflation, which is currently 1.8%, but the gap has narrowed. "March's labour market release reported a solid performance on the jobs side, but included worrying signs of weakness with regards to wages," said Martin Beck, senior economic advisor to the EY Item Club - a respected economic forecasting group.