Commenting on today’s Labour Market statistics, which showed 44,000 more people in work between January and March than in the previous three months, Michael Martins, Economist at the Institute of Directors, said:
“There is much to be celebrated in today’s figures, including the highest employment rate on record and the lowest rate of young people not in employment or training. Lower regular pay growth is less positive, having fallen in the private sector from 2.5% to 2.3%. This is likely to continue as the areas where low pay tends to predominate, like retail, accommodation and food services, have the highest level of vacancies.
“While the IoD supports the intention behind the National Living Wage, one of the effects of it will be to make candidates over 25 less attractive compared to younger workers. This may help to reduce youth unemployment, which has plateaued at 12% after falling over recent months, but it may have a dampening impact on wage growth or employment prospects for those in their later twenties.”