Bank of England survey indicates pay growth set to surge in 2018

09 Nov 2017

A survey carried out by the Bank of England (BoE) has indicated that wage growth is set to accelerate in 2018 as businesses begin to increase wages amid recruitment difficulties.

The survey, which polled 700 UK firms, found that many are finding it ‘increasingly difficult’ to recruit new staff members.

As a result, pay settlements are likely to increase both this year and next: pay growth could rise by 2% to 3% this year, with increases in 2018 of between 2.5% and 3.5%.

The news will undoubtedly come as a welcome relief to many households currently in financial difficulty.

Commenting on the news, Matthew Whittaker, Chief Economist at the Resolution Foundation, said: ‘It’s been clear for a while that the labour market has been getting pretty tight, but we haven’t seen much feed-through to pay.

‘One possibility is that the first thing to shift has been job quality, with zero-hours contracts, temporary working and other forms of atypical employment plateauing or falling in recent months.

‘If the tightness is feeding through to wages now, then that’s obviously good news for workers, who’ve been facing a return of the pay squeeze in 2017.’

Environmental Policy | Accessibility | Disclaimer | Help | Site map | © 2018 Davis Bonley Limited. All rights reserved.

Davis Bonley, Northside House, Mount Pleasant, Barnet, Hertfordshire EN4 9EE , Davis Bonley is a trading name of Davis Bonley Limited, Northside House, Mount Pleasant, Barnet, Herts EN4 9EE. Company registration number 08989322. Regulated as auditors and regulated for a range of investment business activities by the Association of Chartered Certified Accountants. Awarded approved employer status for Association of Chartered Certified Accountants trainee and practising certificate development.

We use cookies on this website, you can find more information about cookies here.

Payroll Services Barnet