Royston Carr Asset Management - Uncertainty over outcome of Brexit cited as reason for slow UK wage growth.
Online PR News – 24-September-2018 – Taipei City, Taiwan – According to Bank of England rate setter Gertjan Vlieghe, despite the joblessness rate falling to an almost 40 year low, Britain's rate of salary growth is increasing at a slow pace.
Royston Carr Asset Management analysts say that several signs pointed to employers finding it difficult to find or keep the necessary labor and that this was putting pay growth under some pressure.
Last month, the Bank of England increased interest rates for only the second time since the financial crisis began almost a decade ago. The BoE stated then that it believed pay growth would accelerate given the falling rate of joblessness.
Although recent official data revealed that wage growth for UK laborers has accelerated to a rate that has not been surpassed since 2015, Taylor Newman, Director of Mergers & Acquisitions at Royston Carr Asset Management says progress toward increased wage growth has been slower than hoped for.
Newman says that many people in the UK are still classified as under-employed which means there is still a large number of laborers who would be willing to work additional hours. Royston Carr Asset Management believe that this could be another reason cited for the sluggish pay growth.
Vlieghe made no further comment regarding the Bank of England's outlook for future policy decisions.
Bank of England Governor, Mark Carney recently stated that concern about the outcome of Brexit has had a negative impact on wage growth in the UK.
Last month the BoE forecast that weekly wage growth would increase to 3.25 percent next year and 3.5 percent the year after reaching 2.6 percent in August this year.