The Magazine for Asian Investors
The UK’s Institute of Personnel and Development (CIPD) has released a survey showing that employers in the UK are expected to raise wages by up to 3% – the highest rate in nearly 10 years.
The CIPD said that while the BoE is concerned about the cycle of wage increases in the tight U.K. labor market, companies are not expected to spend money to eliminate jobs.
The 2022 Median Wage Plan Report, which covers both public and private employees, says wages will rise 3%, the highest rate in nearly 10 years and up from 2% three months ago
The BoE is keeping a close eye on the UK labor market. After the BoE raised interest rates in December last year and at the beginning of February this year, the direction of interest rates should be noted. It is expected that the consumer price index (CPI) could rise by 7.25% in April and remain at an average of 5.75% in 2022.
At the same time, the Bank of England expects wages to rise by 3.75% this year, meaning that British households will be affected by inflation caused by rising wages.
Jonathan Boyes, an economist at the CIPD, said, “But most people still believe that real wages will fall relative to high rates of inflation.”