Responding to official figures which showed the headline rate of unemployment fell to 5.5 per cent and wage growth accelerated to 2.7 per cent in the three months to April 2015, James Sproule, Chief Economist at the Institute of Directors said:
“With real wages growing and unemployment continuing to fall, today’s figures indicate the UK economy is well along the road of recovery. Falling energy prices and low inflation have eased the pressure on companies and boosted their balance sheets. Many are now able to pass these benefits on to their staff through pay rises and bonuses.
“During the downturn, businesses made the difficult decision to preserve jobs and asked that employees forsake pay rises. The strength of the recovery proves this was the right choice. Encouragingly, pay rises are being handed out in a manner which is both sustainable and in line with long-term productivity trends. As the labour market continues to tighten and competition for jobs heats up, real wage growth should remain entrenched for some time to come.”