Question to the Department for Work and Pensions:

To ask His Majesty's Government what assessment they have made of Britain’s labour market, particularly in relation to (1) the decrease in job placements, and (2) the decline in pay growth.

Job placements, as measured by employment, are currently at 33.2m. These have increased by 265,000 on the quarter and 150,000 on the year. The employment rate remains lower than it was immediately pre-COVID by 1.4 percentage points. This has been driven almost entirely by increased economic inactivity, including long term sickness which is at a near-record high.

Regular pay growth (excluding bonuses) is currently at 5.1% on the year without accounting for inflation. This rate of pay growth has slowed since June 2023 when it reached 7.9%. Regular pay growth after inflation is currently at 2.2% on the year, following falls in real pay in 2022 and 2023 due to high inflation. Regular earnings after inflation are currently only 3% or £15 a week higher in the latest three months than the start of 2008, 16 years ago.