ADVERTISEMENT

U.K. Advertised Pay Growth Not Enough to Stop Squeeze on Workers

U.K. Advertised Pay Growth Not Enough to Stop Squeeze on Workers

(Bloomberg) -- U.K. job seekers saw the first annual increase in advertised salaries in more than two years in November, according to employment search company Adzuna.

While the average advertised salary climbed 1.2 percent to 32,598 pounds ($43,700), that’s still well below the pace of inflation, which exceeded 3 percent last month. The gap highlights the continued squeeze on household finances that is expected to extend into 2018.

U.K. Advertised Pay Growth Not Enough to Stop Squeeze on Workers

Workers saw their real pay decline this year after the weaker pound boosted prices and average earnings growth failed to move much above 2 percent. While inflation is forecast to slow, the Resolution Foundation warned this week that it expects real wages to be flat next year.

The gloom was echoed by the Confederation of British Industry on Thursday, which said that real incomes “will continue to be squeezed by relatively high inflation and tepid wage growth.” The business lobby group also said its index of private-sector output improved in the fourth quarter of 2017 -- rising to the highest in two years -- though expectations for early next year are weaker.

Longer term, the outlook is subject to a “high degree of downside risk,” largely related to progress in Brexit talks, it said.

To contact the reporter on this story: Fergal O'Brien in London at fobrien@bloomberg.net.

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Scott Hamilton, Keith Jenkins

©2017 Bloomberg L.P.