UK Basic Wage To Rise?
Private employers in the UK are planning to increase employee wages by an average of 2.5 per cent this year, the same as they did in 2018, a new survey has revealed.
Reuters reported on the findings of the research by XpertHR, which collates information on the pay settlements offered by large employers each year.
The organisation found that a number of factors are pushing employers to offer higher wage increases. They include the need to match competitors and tackle issues with retention and recruitment. However, there are also factors putting pressure on wages, such as the higher mandatory employer contributions to pension schemes and Brexit uncertainty.
Brexit is having another impact in that some firms have revealed that they’re delaying a decision on the level of pay increase they’ll award until there is more clarity over the UK’s exit from the EU.
This comes as the government announced record levels of employment in the UK. The latest figures show that the country’s employment rate is at an all-time high of 76.1 per cent.
Crucially, the unemployment rate is still low, sitting at 3.9 per cent. This is the first time it’s been this low since the 1970s.
What’s more, the government data indicates that wage growth is outstripping inflation and that it’s done so for the past 12 months.
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