Wage growth slips with wage pressure: James Pinchbeck of Streets Accountants reacts to Labour Market Statistics

James Pinchbeck, Marketing Partner at Streets Chartered Accountants

Labour market statistics for February 2018 to April 2018 show employment increased by 146,000, 20% more than predicted by economists, and unemployment decreased by 38,000 according to the Office for National Statistics (ONS).

Despite this wage growth has slipped from 2.9 per cent to 2.8 per cent in the three months to April, even though the unemployment rate reached a record-high of 75.6 per cent.

Commenting on the statistics, James Pinchbeck, Marketing Partner at Streets Chartered Accountants said: “Wage growth is an outcome of either wage pressure and demands from employees or the need or ability for employers to increase pay for their staff.

“Overall whilst we have seen pay pressure from businesses seeking to recruit or retain staff and in particular certain skills, uncertainty in the economy and challenges around productivity have possibly suppressed potential pay increases. Business are also seeing continued increases in payroll costs with increased in Auto-Enrolment, the living and minimum wage.”