The latest average weekly earnings figures. Source ONS
Data from the Office for National Statistics (ONS) published last week showed that rises in weekly wages have finally caught up with inflation. Aside from a brief two month reprieve in early 2010, it’s the first time in six years that earnings have matched inflation.
The statistics show that weekly wages, including bonuses, rose by 1.7% in the year to February, up from 1.4% in January, while the Consumer Prices Index (CPI) inflation stood at 1.7% in February and fell to 1.6% in March.
Chief Secretary to the Treasury, Danny Alexander said: “These figures are some of the strongest evidence yet that we are embedding the recovery. With earnings now rising in line with prices and employment rising, these figures reinforce the fact that the only way to higher living standards is to take the difficult decisions needed to deliver our long-term economic plan.”
Neil Carberry, director for employment and skills at the CBI added: “We’ve always said that as growth picks up more people will feel the benefits. Businesses are creating jobs across all sectors and real wages in the private sector are rising.”
Although the headlines were dominated by the news that earnings are starting to move above cost of living increases, it will be several years yet before real wages are back to the level they were before the global financial crisis.
“This news continues to point towards economic recovery, and coupled with the downward trend in unemployment, employers are clearly feeling more positive about the future,” added Norwich-based accountancy recruitment specialist, Sam Holt.
Mr Holt, a director of Big Sky Additions based in the city, is eager to offer employers advice and support to review their pay scales and salary packages at this time: “There’s nothing in the ONS data which compels employers to increase wages immediately, but it’s a timely opportunity for companies to look at their current pay structures to ensure that they are in line with industry expectations,” he advises. “We know that to attract and retain the best talent in the market, salary and benefits packages are an important part of the offer.”
To arrange a free review of your pay scales please contact Sam Holt today :-
