Wage Rises Beating Inflation

Published / Last Updated on 12/06/2019

The Office for National Statistics official figures reported today, that the jobless figure rates had stayed the same and was at its lowest rate since 1975.

UK wages have grown quicker than anticipated but the hiring of new employees has slowed down.

In February, March and April the total earnings including bonuses went up by 3.1% slightly lower from 3.3% in March but still better than the 3.0% forecast.

Pay growth was up to 3.4% excluding bonuses, better than the 3.3% expected forecast. In April it was 3.8% which is the biggest single month rise since May 2008.

Unemployment rate did stay at 3.8% as predicted, and there was a small increase of people in employment from 32,000 million to 32,746 million, as employers were saying it is hard to find staff. 

Wage growth prediction is said to be 3% at the end of the year reported by the Bank of England, as the figures show firms have decided to take people on than commit to longer-term investments.

Comments

With wages growing faster than inflation, it will drive prices up, in particular we may start to see house prices stabilise in the South East and possibly fall outside the South East as wages catch up to offer great affordability and to then boost upwards again in the UK.  With wage inflation and then consumer inflation expect interest rate rises, once the Brexit outcome is known.

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