News World UK wages pick up but still below pre-2008 crisis levels - ONS

UK wages pick up but still below pre-2008 crisis levels – ONS

British households enjoyed faster wage growth in the year to April but, when adjusted for inflation, earnings are still below their levels before the financial crisis a decade ago, an annual survey showed on Thursday.

Median full-time weekly earnings increased 3.5 percent in the year to April 2018, the strongest growth in nominal terms for 10 years, the Office for National Statistics said in its Annual Survey of Hours and Earnings.

Bank of England Chief Economist Andy Haldane said this month there were finally signs of a “new dawn” for pay increases as the steep fall in unemployment prompts many employers to offer more to keep and hire staff.

The BoE believes rising wages will create inflationary pressure and require further, gradual increases in interest rates, even as Britain’s economy grows only slowly because of its impending departure from the European Union.

But Thursday’s figures looked less positive when taking into account the rise in inflation caused in large part by the pound’s plunge after the 2016 vote in favour of Brexit.

Real-terms median earnings rose by 1.2 percent in the 12 months to April 2018, the ONS said. Although that was a rebound from the 0.5 percent drop seen last year, growth was faster in 2016 and 2015.

“This mixed picture comes off the back of a disastrous decade for pay,” said Stephen Clarke, senior economic analyst at the Resolution Foundation, a think-tank that focuses on living standards.

The ONS said earnings adjusted for inflation remained 3.7 percent lower than in 2008, before the financial crisis.

“Worryingly, today’s figures also show the first growth in pay inequality since 2010,” Taylor said.

This was caused by a drop in hours worked by the lowest paid, offsetting a rise in the minimum wage, and coupled with an increase in wages for the highest earners.

Earlier on Thursday a survey from wage data firm XpertHR showed British companies have no plans to step up the pay awards they offer staff over the coming year, posing a challenge to BoE’s forecasts of faster pay growth.

The BoE is due to publish new forecasts along with its interest rate decision on Nov. 1. ($1 = 0.7754 pounds)


Top Stories

Trump cutting U.S. ties with World Health Organization over virus

The United States will end its relationship with the World Health Organization over the body's handling of the coronavirus pandemic, U.S. President Donald Trump said on...

Paralimni: Biker injured, police looking for driver who left scene

  A 23 year old biker has been hospitalised after a traffic accident in Paralimni and police are looking for the driver of a vehicle...

Sporadic COVID-19 infections “part of our new normality,” says health expert

    Sporadic COVID-19 infections should become part of our new normality and should not be a concern until they are reduced to zero for ever,...

€73 m deficit in January – April 2020 as Covid-crisis takes toll

    The Cyprus General Government generated a deficit of €73 million or 0.4% for the period of January – April 2020, reflecting the adverse consequences...

GDP growth rate at 0.8% in Q1 2020, CyStat estimates

    GDP growth rate in Cyprus based on seasonally and working day adjusted data in real terms in the first quarter of this year is...


Local cuisine: An introduction

Rich in fresh ingredients and tasty herbs, offers the very best of Mediterranean culinary delights. Head out to a tavern and feast on a...

Spiced lamb with beetroot salad and scented yoghurt

Lay the lamb on a tray, skin side down. Rub with crushed garlic, sprinkle with spices and ground pistachios, wrap in plastic wrap and...

Easy seafood pasta with white wine sauce

Ingredients: 2-3 tbsp olive oil 1 garlic clove, chopped 2-3 tablespoons of whipped cream 1/3 cup white wine 300g spaghetti, roughly broken 300-400g of...

Traditional salads that will blow your mind away

This traditional salads will make you actually love salads! Cyprus may be famous for souvla and kleftiko but if you try the traditional salads with...