photo of group of people standing in front of building

UK Employers Increase Average Wages by 5% in November-January, Indicating Another Trend for This Year

Major British employers have agreed to raise the average wage by 5% in the period between November and January, indicating a trend that is likely to continue in the tight labor market conditions. The Income Data Research Center (IDR) reported that the average wage increase rose from 4.3% in August-October to 5% in November-January, and from 3.4% in January-March 2022.

Zoe Woolacott, Senior Research Fellow at IDR, stated that the relatively high wage increases are likely to continue into 2023 due to the upcoming National Living Wage (NLW) increase. However, she also noted that a tight labor market and high inflation will also play a part.

The non-mandatory minimum wage for interns or workers under 23, NLW, will be increased to £10.42 ($12.67) per hour, a 9.7% increase, effective from next month in April.

The Bank of England (BoE) is closely monitoring the rising wages. While many policymakers worry that higher than average wage increases will cause inflation to fall more slowly, inflation rose to a 41-year high of 11.1% in October 2022 and is still in double digits.

The increase in wages is good news for employees as they will have more money to spend, but it may also increase inflationary pressures. The BoE will need to monitor the situation closely and make any necessary adjustments to monetary policy to keep inflation under control.

Leave a Reply

%d bloggers like this: