Data released today by the ONS indicated a softening in
momentum in the labour market.
Disappointingly, employment has fallen for the first time in two years and unemployment has edged up. Yet, the fall in employment was mainly driven by a decline in the number of people working for themselves, as opposed to for a business. And set against a backdrop of strong employment growth since mid-2013, it is to soon to tell whether this is simply a blip or a longer-term trend.
There was some more positive news too however. The rate of pay growth in the private sector edged up once again. This, combined with rock bottom inflation,] means that households will continue to feel better off.
In the Queen’s Speech, the government announced plans to introduce a European Union Referendum Bill for an in/ out referendum on Britain's membership of the EU. On the face of it, a ‘Brexit’ would give the UK power to repeal or reshape much of the employment legislation that businesses dislike. But what would a vote to leave actually mean for employers?