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

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.

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.’

Quick Links

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2018 Blue Spire Limited. All rights reserved.

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

Contact Chichester Office

Tel: +44 (0)1243 781234
Fax: +44 (0)1243 791770
Email: chichester@bluespiregroup.com


Contact Brighton Office

Tel: +44 (0)1273 739533
Fax: +44 (0)1273 732844
Email: brighton@bluespiregroup.com

Chichester Address
Cawley Priory, South Pallant, Chichester, West Sussex PO19 1SY

Brighton Address
5th Floor Intergen House, 65-67 Western Road, Hove, East Sussex BN3 2JQ

Blue Spire Limited is Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales C004152645. Professional indemnity insurance is provided by Royal & Sun Alliance Insurance Plc 9th Floor, One Plantation Place, 30 Fenchurch Street, London, EC3M 3BD and its territorial coverage is worldwide (excluding United States/Canada).
Blue Spire Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. FSA register https://www.fca.org.uk/register reference 566257. This guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at customers based in the UK