British wage growth rose in the three months to January, possibly signalling an end to the unusually slow wage growth plaguing Britain throughout 2015.
According to official data released on Wednesday, the total earnings of workers, including bonuses, rose 2.1 percent on the year in the three months to January, up from 1.9 percent. January alone saw the biggest wage growth jump since August at 2.5 percent.
Unemployment figures remained steady at 5.1 percent, a ten-year low, for the third month in a row; however, analysts have been puzzled by wage growth remaining so low, despite this decrease in unemployment. With the upcoming EU referendum causing uncertainty and volatility for the UK, it looks unlikely to rise in the near future.
Low inflation benefits UK households
New figures released by Markit today suggest that the UK’s low inflation has been beneficial to British households since 2015, despite the slow-down in wage growth and a drop in take-home pay.
Markit’s Household Finance Index for March was weakened by the first drop in income from employment since December 2014, but overall showed optimism for the year ahead.
Markit economist Philip Leake said:
“With fresh public spending cuts expected in today’s budget announcement, headwinds to household confidence are likely to persist in coming months.”
16/03/2016
