All the day“s economic and financial news, including a new healthcheck on Britain“s labour forceLatest: Real wages only growing at 1.4%Wages growth slows unexpectedlyUK JOBS REPORT: Unemployment down, jobs total up ONS: Labour market approaching full capacitySmall fall in EU workers in BritainMillions of UK families trapped below poverty line 10.49am GMT These charts from Resolution also show how real earnings growth has slowed....Real pay growth dropped to 1.4% in December, its lowest level in almost two years. pic.twitter.com/mQ7ZOeuGz6The pay growth slowdown comes with weekly earnings still £21 below their peak - pushing out the point of recovery still further. pic.twitter.com/5sPfxe2v0T 10.47am GMT The Resolution Foundation has bad news for UK workers -- they think the squeeze on wages will continue this year.With inflation set to keep rising, real pay rises will be dragged below the 1.4% reported today.`Today“s figures show the jobs market remains robust, with employment reaching a new record high and inactivity starting to fall again.`However, the encouraging news on jobs isn“t feeding through into earnings, which have shown no sign of responding to fast-rising inflation. Unless this changes Britain is set for a fresh pay squeeze later this year.The rate of price inflation may soon outstrip wage growth, putting a squeeze on wages. Indeed, the single month figure exceeds 2.5% only in construction.` 10.25am GMT Today“s report also shows that real wage growth in the UK economy has now fallen to a two-year low, putting more pressure on households.That“s because average earnings only rose by 2.6% in October-December, while inflation averaged 1.2% over the quarter (and has climbed to 1.8% in January!).`With prices rising faster, real pay growth is now slowing down. This will be worrying for families whose have still not seen their living standards recover following the financial crisis.`Next month“s Budget must set out a clear plan for preventing another fall in ...
|
