Pay packets are getting heavier but there is some ground to make up before they weigh what they did in early 2021, warns the CIPD

Responding to today’s ONS labour market figures, Jon Boys, Senior Labour Market Economist for the CIPD, the professional body for HR and people development, comments:

“Real regular pay is growing at 1.1%. This isn’t much, but at least pay packets are getting heavier each month and not lighter, as has been the case for much of the last two years. The cost-of-living crisis is easing but it’ll be some time before pay packets weigh as much as they did in early 2021. 

“Alternative PAYE estimates data from HMRC suggests that pay growth is easing and grew by 5.7% in the year to September. Many employers will be relieved to see pay growth easing as it reflects a higher cost of doing business. However, recruitment and retention remain challenging, and employers must work hard on the total employment package to keep staff motivated and help alleviate the burden of the cost-of-living crisis. Paying attention to things people value such as flexible working and making use of benefits like salary sacrifice can boost the value proposition of employment.”