A recent Recruitment & Employment Confederation (REC) press release illustrated the issue relating to Real wages. For the sixth consecutive month, wages continue to fall, according to today’s labour market statistics published by the Office for National Statistics (ONS). The release also shows that employment reached 32.1 million in the three months to August. It also shows that unemployment fell further, to 1.44 million, but vacancies increased meaning the ratio of job seekers to available jobs fell to 1.9, equal lowest since records began in 2001. Commenting, Recruitment & Employment Confederation chief executive Kevin Green says:
“The creation of more jobs despite business uncertainty is a testament to the determination and positive attitude of British employers to build and grow in the face of economic challenges. From a job seeker’s point of view though, the continued squeeze on wages means there is little room for full-throttle celebration.
“Recruiters tell us that due to the diminishing pool of available candidates, employers are willing to offer higher salaries or hourly pay rates when advertising for new hires, meaning the best way to secure an above-inflation pay rise might well be to move jobs.
“Businesses can only grow if they have access to the people and skills they need. As the supply of available workers decreases, exacerbated by a declining rate of net migration, it is essential that the government does all it can to support employers. That means urgent clarity on the details of any post-Brexit transition period, confirmation that EU nationals currently working in the UK can stay and rapid development of a sustainable, agile, evidence-based immigration system that will support the economy.”
CEO or Sporting Group International, Adrian Wright commented “the stagnation of wages in the UK is a serious issue for our economy. The decline in growth will certainly inhibit the development and drive of employees. If people do not feel they are being rewarded for their efforts and responsibilities, naturally the consideration of making a job move will be on agenda if wages cannot meet the demands of the increased cost of living”.