Key trends in 2022 for UK economic pay and labour market
As we start a new year the labour market is making slow recovery in the UK economy. Imbalances between labour demand and labour supply are causing broad-based wage pressures, in turn posing a risk to inflation.
This latest update from Cendex covers key trends in the UK economy, including: labour market, labour turnover, pay and inflation, forecasts and trends.
Key findings
1. Consumer confidence weakens According to research by market analyst GfK, consumer confidence fell by four points to -19 in January 2022 compared with December 2021 (-15). It found that concerns about inflation, fuel bills and interest rate rises have led to the decline.
2. Labour shortages prevail UK recruitment consultancies continued to signal tight labour market conditions at the end of 2021, according to the Recruitment & Employment Confederation’s latest KPMG and REC, UK Report on Jobs survey.
3. Supply chain disruption set to continue The logistics crunch experienced in 2021 remains a problem this year as the pandemic continues to have an impact on global supply chains, with freight from China to Europe currently badly affected.
