Pay growth continues to defy expectations in 2025
Employers face a challenging year ahead, with rising costs and employment law changes on the horizon likely to affect hiring and wage growth, says the CIPD
Employers face a challenging year ahead, with rising costs and employment law changes on the horizon likely to affect hiring and wage growth, says the CIPD
“Today’s figures show high wage growth continues to be a mainstay in the economy. Pay growth has risen once again, driven by the private sector. Looking ahead, the pay growth picture remains difficult to predict as while the labour market is loosening, public sector pay rises towards the end of last year are yet to make their way through the system.
“Firms unable to absorb cost increases announced in the Budget may have no choice but to raise prices this year which is likely to have inflationary impacts and feed into ongoing wage growth.
“With vacancies falling and unemployment continuing to edge up even before the impact of the increases to employer National Insurance contributions have taken effect, 2025 is likely to be a challenging year for many job seekers.
“It's crucial that the Government consults fully on measures to be introduced in the Employment Rights Bill to ensure they don’t reduce future job opportunities, particularly for young people and other candidates viewed as higher risk by employers.”
If you wish to reproduce this press release on your website, please link back to this page as the original source
Are you a journalist looking for expert commentary and insights on the world of work?
The latest views and insights from our experts on the world of work
Keep up-to-date on the latest research and current practices with our reports, factsheets and guides
Better work and working lives for all
Develop your career in the people profession and make an impact.