Mixed picture for employers on jobs and wages – Chamber
The latest figures on job vacancies and wages present a mixed picture for Greater Birmingham businesses, business leaders said today.
According to figures released today by the Office for National Statistics, average pay growth rose above inflation for the first time in almost two years, in a sign that the squeeze on living costs may be starting to ease.
Wages rose by 7.8 per cent between June and August, according to official figures.
Annual growth in employees' average total pay, including bonuses, was 8.1 per cent in the same period.
The total growth rate was impacted affected by NHS and civil service one-off payments made in June, July and August 2023.
Annual growth in real terms - adjusted for inflation using Consumer Prices Index and including owner occupiers' housing costs - for total pay rose on the year by 1.3 per cent in June to August 2023, and for regular pay rose on the year by 1.1 per cent.
While those in regular employment may notice their pay packets going further, Greater Birmingham Chambers of Commerce said employers are still feeling the squeeze due to price pressures and continued struggles in accessing skilled talent.
Emily Stubbs, policy and campaigns manager at Greater Birmingham Chambers of Commerce, said: “Though labour market conditions remain significantly tighter than pre-pandemic, a continued ease in vacancies appears to be cautiously applying the brakes on nominal pay growth.
“That said, with inflation softening, these figures reflect the first time in almost two years that growth in average pay has outstripped increases in consumer prices, meaning that those in employment will feel their increased pay packets going further.
"Altogether, it’s a mixed picture for employers. Price pressures remain extremely high and many Greater Birmingham businesses continue to face difficulties accessing the skilled talent they need to weather current economic conditions and enable growth.
“Many will also be concerned about the impact of recent government announcements in the region."
The Chamber's upcoming Birmingham Economic Review will discuss these recent developments, providing an up to date, comprehensive analysis of the city-regional economy, including skills gaps and the regional employment landscape, with expert commentary from world-class academics and local business leaders.
