Member Article

Lowest pay growth Vs highest employment rates In UK

There is a good news and bad news, UK unemployment rate has fallen to lowest and wage growth is also slowed.Unemployment hit 5.1% from August to November, the last time we see the figure was October 2005.

Only 1.68 million are resting and 99,000 people during these 3 months. On the bad side, the average weekly income increase was 2%, this figure is the lowest since the last February.ONS and reuters surveys shows 1.9% and 2.1% in the 3 months respectively.

Survey also shows employment rate reaching 74%, it is highest compared with records since 1971.Bank of England governor Mark Carney mentioned increase in interest rates due to slower growth in economy and turmoil in middle east and slow Chinese market growth.Mark expressed to see 3% earnings increased in the next year.

Capital Economics economist and founder of H2omarkets Ruth Miller confirmed and commented “improvements are required”. Inflationary pressure will create problems for the government in the future. EY ITEM Club economist at Martin Beck said, the relation between pay growth and labour demand are directly related. It is frustrating, employment rates are reaching 74%, but pay growth is rendering.

This was posted in Bdaily's Members' News section by Nereida Valerius .