Regular pay growth increased to 5.2% between August and October, according to the latest labour market data, published today.
This followed pay growth reaching its lowest increase in two years in October 2024.
At the same time, vacancies continued to decrease for the 29th consecutive period, to 818,000 between September and November.
The unemployment rate also increased to 4.3% in August to October 2024, up on the year and in the latest quarter.
This showed businesses were taking a “cautious approach to workforce planning”, Jeanette Wheeler, chief software company MHR.
The employment rate increased in the last quarter to 74.9%, according to statistics, and the economic inactivity rate was down on the year and in the last quarter.
However, the number of payrolled employees simultaneously fell by 0.1%.
The fall in payrolled employees showed the increase in employers’ national insurance contributions, announced in the Autumn Budget, had already impacted hiring, according to Kevin Fitzgerald, managing director of HR platform Employment Hero.
He said: “The figures show the disastrous decision to tax employment is already costing jobs.
“A continued fall in job vacancies and people in employment indicates that employers are pulling back on bringing fresh talent into their organisations and are taking clear action to protect their bottom lines. This could lead to a period of little to no growth in 2025.”
She said: “The PMI survey released yesterday strikes a more alarmist tone, finding that businesses are cutting staff numbers at the fastest rate since the global financial crisis.
“HR teams should ensure they’re using in-house data to focus on their own workforce trends rather than relying on statistics.”
