Research Briefing | May 21, 2021

UK | Why strong pay growth isn’t what it seems

Ipad Frame (1)-May-24-2021-02-36-01-23-PM

UK wages have recently grown at a pace not seen for over a decade. But rather than a sign of nascent inflationary pressure, changes in the makeup of jobs have exaggerated headline pay, and comparisons with a depressed 2020 will compound this over the next few months.
Lower-paid staff have been more likely to lose their jobs during the pandemic, cutting the weight of these jobs in the average pay calculation. And as people on furlough return to work, y/y earnings growth is likely to hit a record high.

What you will learn about:

  • Pandemic effects will distort headline pay numbers for some time to come
  • The post-Covid world presents upside and downside risks to pay growth.
  • The post-Covid world could see some slight reversal of the power imbalance between employers and their employees

Back to Resource Hub

Related Services

Trump and Travel Header | American Flags

Post

US Rolls Up Welcome Mat for International Travel

Research Briefing UK | Why strong pay growth isn’t what it seems Trump tariffs set to raise effective rate above 1930s levels.

Find Out More
US liberation day

Post

Initial takeaways from Trump’s ‘Liberation Day’ announcement

In two or three years' time, US imports could fall by around 15% due to discounted reciprocal tariff hikes.

Find Out More