Pay Growth’s Quiet Slowdown: What Workers and Bosses Really Feel
Over the past year, UK employees saw wages rise faster than the national price tag – it looked like a salary balloon. New data suggests that inflation is now settling for the better, so the pay rocket has probably hit its peak. Yet, despite the economic slowdown, workers are still feeling pretty confident in the security of their job budbreak.
Why the Blues Aren’t Shaking the Workforce
- 58.4 % of staff expect job security for the next half‑year, despite a challenging economic backdrop of low unemployment and a market that’s low‑key hungry.
- High demand for skills means reliable EPL job prospects remain a go‑we’ll-park factor in the confidence index, the right hand of the heavy hitter of the JCI’s score for eight straight quarters.
- Even though the economy’s twirling slow, this confidence is in line with the Centre for Economics and Business Research’s mid‑term thoughts on the labour market.
Unemployment’s Slight Nail‑Biting Escalation
As interest rates keep playing the consumer “hush‑hush” game, job numbers might inch up – but the market will still feel tight compared to historical times.
Surprising Boost of “Job Hunt Confidence”
- The search‑confidence metric climbed 5.5 % to 47.4 % in the third quarter of 2023.
- That’s a shocker and may give firms a headache in the New Year when workers feel ready to climb the ladder.
Market Outlook – Payments, People & Prospects
RobHalf’s 2024 Salary Guide tells the story: 69 % of businesses feel confident about growth; 47 % plan to hire more permanent staff. Yet a whopping 75 % are already worried about pulling in and keeping skilled talent.
Executive Chatter on Paid Peaks & Skill Shortages
Matt Weston, Senior Managing Director UK & Ireland at Robert Half, says:
“We’re spotting that pay inflation is plateauing. The good news? Wage growth will still outpace inflation for the next months.”
“The workforce keeps their pep when the economy’s less incandescent than usual. Unusual, but the labour market still jolts pretty hard.”
“The mix of Brexit, the Great Resignation, and post‑pandemic dynamics are reshaping the talent quest. Ok, this is a tough marathon for firms.”
“Job and business confidence are hopping up, but skills shortages and dormant talent will need some serious long‑haul hustle.”
“If colleges won’t adapt or the market’s learning paths lag, matching jobs with workers gets unlikely.”
How to Stay Ahead of the Game
- Agility in talent strategies is going to be your new secret sauce.
- Be ready to pivot workforce models – think less iceberg, more surfboard.
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