CMI responds to ONS inflation data

In response to the latest inflation data released today by the ONS, Anthony Painter, Director of Policy at the CMI, said: 

As inflation continues to outstrip wages and mortgage and rent costs continue to climb,  managers told us they are seeing their teams’ ability to cope taking a hit.

CMI research shows that even before the latest round of steep rate hikes, productivity was suffering, rates of sickness and anxiety were increasing and staff are understandably distracted and hesitant to take on a heavier workload.

The concern now has to be that the UK will enter recession in 2024 as a result of anticipated interest rates rises that could persist for longer. Key for managers is to be prepared for economic turbulence, continue to support their staff wherever possible, plan for medium term resilience but continue to keep an eye on long term investment and skills.

Further information

CMI research first conducted when energy prices spiked last autumn showed that managers were already seeing the knock-on effects of the cost of living crisis across their workforces. Notably:

• The majority of employers believe the cost-of-living crisis has caused stress and anxiety that has affected productivity levels.
• 95% of managers said that members of their team are concerned about the rising cost of living in the UK.
• Of these, 93% say it is affecting productivity levels, with top concerns being more distraction; increased sick leave and less willingness to take on a heavier workload.
• 79% of public sector managers indicate having seen this stress and anxiety growing compared to 57% of the private sector managers.
• 78% of female managers compared to 73% of male managers indicate having seen this stress and anxiety increase.