Pay In UK Growing Amid Fears Of A Global Economic Slowdown

The basic pay in the UK is growing at a fast pace, faster than the current economic trend should allow, according to The Guardian. The British labor market has continued to display resilience to any slowdown affecting the economy, even as the whole world is trying to find ways to revive their respective local economies.

Despite many signs of weakness, the latest data received by analysts from the Office for National Statistics displayed annual average earnings growth at a 3.6% value.

This was during three months up until May, showing how it shouldered the increase in the cost of living comfortably. That period between March and May saw uncertainties as Brexit concerns gripped the population.

A recent survey of the economy revealed what Londoners and most UK residents thought about the exit that it would result in failed investments as well as "empty high streets."  Contrary to expectations, unemployment-as measured by the "yardstick"-instead fell down, dropping to 51,000 to stand currently at 1,292,000.

This is in contrast to the economic slowdown that China and like the rest of the world are seeing. The country's economic growth slumped to its lowest level in just under three decades. There are many possible reasons behind it, according to CNN Business. Chief among these, aside from the global economic slowdown, is the prevailing trade war with the United States.

Beijing and Washington have recently agreed to come into trade talks or a temporary truce to the months-long trade tension.

They are still planning on restarting trade talks. Both sides are still talking, but analysts are skeptical and are raising question marks on how both sides can reach a deal to remove tariffs, which US President Donald Trump has been piling steadily one after the other over the past 12 months.

The Bank of England has been steadily monitoring how the growth in earnings has been happening. The monetary policy committee is overseeing these affairs to assess whether there is a need to raise interest rates. The likelihood of the economy moving "sideways" into the second quarter of 2019 will determine whether the committee will not raise these interest rates.

With the labor market continuing to be strong and the employment rate still at near-record high rates, that seems highly unlikely. Regular pay has been growing at a steady rate for the past 11 years and at its quickest rate for over the past three years.

© 2019 Business Times All rights reserved. Do not reproduce without permission.
Sign Up for Newsletters and Alerts