CMA research report on competition and market power in UK labour market

Summary:

Research conducted by the UK's Competition and Markets Authority (CMA) Microeconomics Unit has shed light on the UK labour market, analyzing trends in competition and employer market power. Key findings include:

Labour market concentration in the UK has remained roughly the same over the past 20 years, with around 30% of employees impacted by non-compete clauses.
Concentration varies by region and industry, with labour markets outside of London and the Southeast being more concentrated.
Wages are, on average, 10% lower in the most concentrated markets compared to the least.
The share of income workers receive compared to their input has risen slightly in most of the UK, indicating a slight increase in labour market power for employers.
* The report supports the CMA's focus on tackling anti-competitive wage-fixing and no-poach agreements between employers.

The findings aim to inform wider policy thinking and support the CMA's work in regulating the labour market to promote competitive markets and address unfair behaviour.