This is the key finding in the September Labour Market Update compiled by the CBI. The regular monthly summary found:
- The UK labour market’s performance at creating jobs continues in puzzling contrast to the lacklustre GDP growth that has characterised recent months. Employment has grown strongly once again, and at a faster pace, pushing both the headline number and rate to new all-time highs.
- Unemployment also continues to fall, with the rate once again at its lowest since 1975.
- But pay growth has waned again, leading to a fifth consecutive month in which wage growth has not kept pace with rising prices.
- For wage growth to move sustainably onto a higher path, it is crucial for productivity growth to pick up – productivity has fallen in the first half of 2017.
- Looking across the regions and nations, the picture is mixed, with employment growth spread unevenly and few regions seeing a statistically significant fall in unemployment.
A copy of the CBI report can be found here.