The CIPD has released the Autumn 2023 edition of the CIPD Labour Market Outlook – here’s a summary of the report, which you can watch in full below:

Positive Net Employment Balance Continues

The report says:

“The difference between employers expecting to increase staff levels in the next three months and those expecting to decrease staff levels – remains positive at +26. Net employment intentions are equal in the private and public sector.”

Redundancies Falling

The report noted that redundancy intentions are falling for the first time since Winter 2021/2, with only 17% of employers expecting to make redundancies in the last quarter of 2023

Public Sector Struggling to Fill Vacancies, Pay Increases Expected to be in line with Private Sector

Many employers continue to have hard-to-fill vacancies, but the public sector is hit hardest, with 51% of public sector employers reporting them as opposed to only 38% in the private sector.

The report predicts an expected 5% rise in basic pay for public sector employees, aligning it with the rate seen in the private sector for the first time since 2021.

This marks a significant development, the highest ever recorded in historical data for the public sector.

The report also highlights a decreasing level of concern about the cost-of-living crisis among UK employers, as they express greater confidence in their ability to support their workforce. However, it’s essential to note that while inflation has moderated, overall expenses have not decreased.

Consequently, employers must continue to pay attention to the financial well-being of their employees, particularly those with lower incomes.

AI  Could Bring Productivity Increases – But there are also concerns about Privacy and Security

The CIPD Report says:

“Despite a high level of uncertainty (37% of employers don’t know), organisations see implementing the use of generative AI as more of an opportunity (41%) than a risk (23%). Two in five (40%) employers see increased productivity and efficiency as an organisational benefit to using generative AI. ”

Many employers are actively exploring and experimenting with this technology, while others are already considering investments in the development of future capabilities.

However, 35% of employers expressed concerns about privacy and security, and some employers have banned it’s use.