British employees face the strongest surge in basic pay for a decade

British employees face the strongest surge in basic pay for a decade

British employees are facing their basic wages leap at the fastest tempo for almost a decade over the summer months, thus underpinning the Bank of England's opinion that a long period of weak pay hikes is coming to its end.

Earnings without bonuses managed to surge by an annual 3.1% for the three months to August. That’s what the Office for National Statistics uncovered on Tuesday.

It beat all estimates in a Reuters interview of market experts.

With bonuses, total earnings headed north by 2.7% for the period, which is a bit above the survey’s median estimate of 2.6%.

Andy Haldane, the Bank of England's leading economist, told the previous week that he spotted indications of another dawn for UK wage surge.

Financial analysts have been puzzled why the country’s wages were tacking on so slowly even against the backdrop of diving unemployment.

Pay surge for British employees speeded down to 0.5% in 2014. Notwithstanding the recent improvement it still stays below the 4% hikes, which were the normal thing before the global financial downtime.

The unemployment rate stayed at its four-decade minimum of about 4% for the three months to August.

However, the overall number of folks in work went down by nearly 5,000, which is the first dive for almost a year. The Reuters survey of market experts had predicted a leap of 11,000.

UK households - whose spending appears to be the key driver of Britain’s economy - have struggled for much of the last decade as compared to inflation their wages soared more slowly.

Wednesday’s data is anticipated to demonstrate the country’s consumer price inflation kept to 2.6% in September, which is below a maximum of 3.1% in November 2017, although still providing mild improvement in spending power for employees.

 

Similar

Latest news

Japan real wages surge is slowest in almost two years

Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera