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Employment and Wages Are Up Again But Progress Is Slowing

Wages are on the increase amid near record rates of employment, according to official figures.

Data released by the Office for National Statistics this morning reveals unemployment fell by 47,000 to 1.36m in the three months to August and pay rose by 3.1% over the quarter, compared with a year ago, while inflation for the same period was 2.5%.

There were 32.39m people in work over the quarter – down 5,000 on the previous quarter.

Commenting on the data, Pawel Adrjan, UK economist at the global job site Indeed, said Britain’s labour market is slowly pivoting from job growth to pay growth: “Average pay is now growing at its fastest rate since 2008, and the curtain could finally be starting to come down on the lost decade of stagnant wages.

“With the number of new jobs created flatlining as the economy hovers close to full employment, employers are having to fight harder and pay more to recruit staff.

“For the economy to deliver more sustained pay growth it needs an injection of the labour market ‘X factor’: better productivity.”

Also commenting Recruitment & Employment Confederation CEO Neil Carberry said the data reflected the strong performance of the UK’s flexible jobs market, with wages rising in real terms and near record rates of employment.

“But there is some evidence that progress has slowed as businesses enter a holding pattern ahead of any Brexit deal.

“What we need now is for the government to take a pragmatic approach that delivers a smooth Brexit for the economy – and for people’s jobs. A transition period and longer-term clarity and stability on terms of trade and mobility between the UK and the EU are essential to avoiding a bumpy landing.”

Read more – www.recruiter.co.uk

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Brexit Strikes: Panasonic To Move Europe Headquarters From UK To Amsterdam

In the run-up to March 2019, a number of multinational firms have said they plan to move jobs out of the UK, including several Japanese financial companies who intend to move their main EU bases away from London.

Panasonic’s decision was driven by a fear that Japan could start considering the UK a tax haven if it cuts corporate tax rates to attract business said Laurent Abadie, Panasonic Europe’s Chief Executive.

If Panasonic ends up paying less tax in the UK, that could in turn make the firm liable for a bigger tax bill in Japan.

Mr Abadie told the Nikkei Asian Review that Panasonic had been considering the move for 15 months, because of Brexit-related concerns such as access to free flow of goods and people.

Panasonic Europe later issued an official statement confirming that it was transferring its regional headquarters from Bracknell in the UK to Amsterdam from 1 October.

The reasons for the move include “improved efficiency and cost competitiveness”.

It said “fewer than approximately 10” people would be affected out of a staff of 30.

“No Panasonic UK business operations will be affected by the EU headquarters move,” the statement added.

Britain voted to leave the EU in 2016, but with less than a year to go, the UK and the EU are struggling to reach consensus on the terms of the exit.

Japan is a major investor in the UK, with over 800 Japanese companies employing more than 100,000 people.

However, financial firms including Nomura, Sumitomo Mitsui and Daiwa have already said they will no longer maintain their EU headquarters in London.

Read More – www.recruitingtimes.org

June24619788 No Comments

UK wage growth picks up to 2.6%

UK wage growth picked up by more than expected in July, official statistics showed on Tuesday.

The Office for National Statistics (ONS) reported that average total pay in the three months to July rose by 2.6 per cent on the same period a year earlier.

That was up from the previous reading of 2.4 per cent and higher than the 2.4 per cent City of London analysts had expected.

Excluding volatile bonuses, pay was up 2.9 per cent.

In the single month of July regular pay was up 3.1 per cent, the most rapid in three years.

The rise in wages will likely reassure the Bank of England that its key judgement about the UK economy – that slack is almost gone and that this will result in inflationary wage pressure – is correct.

The Bank raised interest rates to 0.75 per cent in August, forecasting that wage growth this year would be 2.5 per cent, rising to 3.25 per cent in 2019.

“The labour market figures suggest that competition for workers is finally starting to provide greater support to wages,” said Andrew Wishart of Capital Economics.

“Surveys of wage growth suggest that it will sustain a pace of about 3 per cent over the remainder of the year.”

The ONS also reported on Tuesday that the UK’s strong employment growth this year is levelling off, with a quarterly rise in the numbers in work of just 3,000.

However, the employment rate remained at 75.5 per cent, close to a record high.

And the jobless rate was steady at 4.1 per cent.

“With the number of people in work little changed, employment growth has weakened. However, the labour market remains robust, with the number of people working still at historically high levels, unemployment down on the year and a record number of vacancies,” said David Freeman of the ONS.


Read More – www.independent.co.uk