Rolling coverage of the latest economic and financial news, as public sector workers are hit hardest by the pay squeeze
Real pay packets could be squeezed harder in the months ahead as the economy weakens.
Yael Selfin, chief economist at KPMG UK, says:
“Pay packets continue to be squeezed as nominal pay growth hasn’t kept up with soaring inflation. As long as demand for staff remains high, this could encourage workers to look for better opportunities and secure a higher pay elsewhere.
However, the window of opportunity could soon narrow if employers review their payrolls in light of a deteriorating outlook.”
“The ONS’s latest labour market report tells us that summer’s red-hot labour market is starting to feel an autumn chill, with vacancies down for the second month in a row after nearly two years of nonstop growth.
One notable bright spot for employees: the healthcare sector, where openings are still high. Employers struggling to hire should focus on the over 65s, whose employment rates are tied for the second-highest on record.
