Thursday, October 21, 2021

UK ready for highest wage hike in a decade: CBI

LONDON: More British employers are planning wage increases than at any time since the global financial crisis as they struggle to recruit staff after the coronavirus pandemic and Brexit, data from the Confederation of British Industry (CBI) showed. Shown on Monday.

The CBI said 44 per cent of businesses intended to raise wages in line with inflation and 24 per cent had planned to raise wages above inflation, the highest combined percentage since the start of a survey of occupations in this regard in 2009.

“Salary intentions are rising across the board as companies reopen and the economy improves,” said Matthew Percival, CBI’s director of skills and inclusions.

Although he warned that businesses were likely to pass higher wage bills to their customers unless productivity improved, especially as many also needed to repay loans taken last year during the pandemic.

The prospect of higher prices could be a concern for the Bank of England as its policymakers meet this week. The BoE expects a short-term increase in inflation due to higher oil prices and supply-chain constraints, but has so far said it does not expect lasting inflationary pressure from the job market.

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Only three-quarters of the 422 firms polled by the CBI and the Recruiters Pertemps Network at the end of August said labor shortages were hurting competition, the highest proportion in five years.

The CBI renewed its call on the government to ease post-Brexit visa restrictions on EU employees with in-demand skills.

Separately, manufacturing trade body Make UK said its members are seeing the fastest production growth in more than 30 years and are expected to return to pre-pandemic levels by the end of 2022, sooner than previously forecast .

“The growth prospects for manufacturers are accelerating as economies at home and abroad open up. However, supply chain constraints and rapidly increasing shipping costs are threatening to put obstacles on the road to rapid growth,” said UK Chief Executive Officer Stephen Fipson.

Make UK also criticized the recent government decision to increase employers’ Social Security contributions.

by David Milliken



This News Originally From – The Epoch Times

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