Thursday 21 Jan 2016 @ 16:35
Think Tanks
Printable version

IPPR - Employment is up, but pay and productivity are stalling

Last year’s brief recovery in productivity may have evaporated

Reacting to yesterday’s ONS regional labour market stats Izzy Hatfield, IPPR Research Fellow said:

“While yesterday’s record headline employment rate is very much welcomed, it is concerning that the continuing recovery in the labour market is not reflected in pay and productivity.

"There are worrying signs that near zero inflation is reflected in near zero growth in people’s pay packets. We’ve now had virtually no earnings growth since April 2015, although this isn’t immediately obvious from looking at the headline (annual) growth rate.

“There are also signs that the brief recovery in productivity seen last year may have evaporated: we are working more hours, but this hasn’t led to higher GDP growth yet. This could be a reflection of the type and quality of jobs the economy has added since the financial crisis, with services accounting for an ever-larger share of employment.”

View ONS report: http://www.ons.gov.uk/ons/rel/subnational-labour/regional-labour-market-statistics/january-2016/stb-rlms-january-2016.html

Contact:

Sofie Jenkinson – s.jenkinson@ippr.org 07981 023 031

Lester Holloway – l.holloway@ippr.org 07585 772 633

Share this article

Latest News from
Think Tanks

IEA - Lack of groupthink at the Bank of England is something to cheer

12/05/2025 10:15:00

Julian Jessop, Economics Fellow at the free market think tank the Institute of Economic Affairs, responded to the Bank of England’s decision to cut interest rates to 4.25%

US trade deal shows UK government has played its hand well, says IPPR

12/05/2025 09:15:00

Marley Morris, associate director for trade at IPPR, reacted to the trade deal struck between the UK and the US

IEA - Wind farm cancellation shows climate target ‘folly’

09/05/2025 11:05:00

Andy Mayer, Energy Analyst at the Institute of Economic Affairs responded to the cancellation of the Hornsea 4 offshore wind project 

IPPR North: Powerful mayors need watchdogs with bite

09/05/2025 10:05:00

New report calls for local Mayoral Authority Accountability Committees to hold leaders to account

Adam Smith Inst - Bring Back Urban Development Corporations to Build the Homes We Need

09/05/2025 09:05:00

A new paper from the Adam Smith Institute (ASI) sets out how Urban Development Corporations (UDCs) could unlock housebuilding and drive growth

The King’s Fund responds to the formal start of the Independent Commission on Adult Social Care

05/05/2025 10:05:00

Simon Bottery, Senior Fellow at The King’s Fund, responded to the Independent Commission on Adult Social Care announcement

IFS - Longer NHS waiting lists do not appear to be a significant driver of rising health-related benefit claims

05/05/2025 09:05:00

Have increases in NHS waiting lists and waiting times contributed to the growing number of  people claiming working-age health-related benefits? 

IEA - Solar panel mandate ‘ideological crusade’

02/05/2025 16:05:00

Andy Mayer, Energy Analyst at the free market think tank the Institute of Economic Affairs, commented on the Government’s plan to fit solar panels on all new-build homes 

Ministers must decide priorities and make uncomfortable trade-offs in approach to global economy, urges IPPR

02/05/2025 10:05:00

The government should rethink its global economic priorities and be prepared for uncomfortable trade-offs as it navigates a new era of geopolitics, says a report from the IPPR think tank

Case Study: Hertfordshire County Councils Design-led Approach to Automation