Wages are stalling despite record employment figures
The Guardian reports that wages are not going up as fast as they should be. In any other circumstances, when the unemployment rate has fallen to its lowest level in more than 40 years (from 3.9% to a record 3.8%) and the labour market recorded a rise to a new high of 32.7million, one would expect to see an increase in wages. But pay growth has decreased to 3.3% on the year in the three months to March, from 3.5% in the three months to February.
The answer? Brexit, of course. Analysts suggest that Brexit uncertainty has sent business investment plummeting (or sent it elsewhere), and is likely to have discouraged firms from hiring and improving wage rates. Self-employment on the other hand, has hit a record high of 15.1% of all jobs, last seen in 2017.
Published: 16 May 2019
Article Sections: Payments during Employment