LONDON- As predicted by a think-tank on Friday, a climb in British real wages is foreseen in the first half of 2020 in levels never seen before the financial crisis from the last decade.
In its earnings outlook, the Resolution Foundation has stated that at the year start will see a strong adjustment of pay data for inflation, even with the economic growth being slow-paced. The Foundation also stated that this may raise concerns over the sustainability of the turnaround.
From the time the voters have made the decision of Britain exiting the European Union back in 2016, there has been slow economic growth in the world’s fifth-biggest economy.
On the contrary, the labour market has showcased great performance in 2019, with the unemployment rate at its lowest observed since early 1975.
A non-partisan think-tank that focuses on issues faced by low to middle-income households, the Resolution Foundation also raised a big question for 2020: if the labour market will be able to continue its winning streak or if it would fall back on its previous weak economic performance.
The foundation also added that some of the worrisome indications observed in the market included falling vacancies and rising youth unemployment in addition to earrings suffering from the staggering productivity and weaker nominal wage growth.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.