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