Brexit pushes up UK wages

Irish Independent - Business Week - - BUSINESSWEEK -

STAFFING short­ages linked to Brexit are driv­ing up UK wages. Bri­tish em­ploy­ers are hav­ing to raise pay of­fers in the face of grow­ing re­cruit­ment prob­lems, two sur­veys showed yes­ter­day, fol­low­ing a fall in the num­ber of Euro­pean Union work­ers since the Brexit vote.

Stronger pay growth would ease a big prob­lem for Bri­tain’s econ­omy – wages lag­ging in­fla­tion – and could add to the case for fur­ther in­ter­est rates hikes by the Bank of Eng­land, which last week raised rates for the first time since 2007.

The Re­cruit­ment and Em­ploy­ment Con­fed­er­a­tion said its monthly sur­vey showed start­ing salaries rose in Oc­to­ber at the sec­ondquick­est rate since Novem­ber 2015.

“We al­ready know that EU work­ers are leav­ing be­cause of the un­cer­tain­ties they are fac­ing right now,” said REC chief ex­ec­u­tive Kevin Green.

“We there­fore need clar­ity around what fu­ture im­mi­gra­tion sys­tems will look like. Oth­er­wise, the sit­u­a­tion will get worse and em­ploy­ers will face even more staff short­ages.”

Sep­a­rately yes­ter­day, the Bank of Eng­land said re­cruit­ment dif­fi­cul­ties had in­ten­si­fied and were above nor­mal in a range of ac­tiv­i­ties.

The BoE re­port, based on the find­ings of its re­gional agents across the coun­try, said com­pa­nies ex­pected pay set­tle­ments next year to of­fer in­creases of around 2.5pc to 3.5pc rather than the 2pc to 3pc range seen dur­ing 2017.

(Reuters)

Tá­naiste Frances Fitzger­ald and Dr Yue Xiaoy­ong, Chi­nese Am­bas­sador, at the Asia Mat­ters event. Pic­ture: Mark Condren

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