Commenting on ONS data that showed annual wage inflation (excluding bonuses) continuing to run at its record high level of 7.8% in the three months to June, Dr. Roger Barker, Director of Policy at the Institute of Directors, said:

“The latest data shows a gradual easing of labour market pressures, as the number of vacancies in the economy declined by a further 60,000 in the three months up to July. However, there are still more than a million unfilled positions, which is of great practical concern to businesses leaders.

“Even more worryingly for policy makers, wage inflation shows no sign of abating. The concern for business is that this may feed into the persistence of stubbornly high rates of inflation and high interest rates. Such a backdrop of continuing wage cost pressures and labour shortages is not a positive one for many businesses”.