Brits are beginning to feel the pinch as pay is failing to meet the levels of increased inflation, according to reports by the Office of National Statistics. Workers are expected to be 0.4% out of pocket compared to this time last year, and experts are concerned that the drop in money is going to be felt up to Christmas.
Despite the average total pay of workers, including bonuses, has risen from £498 to £505 a week over the last year, the pay rise has not caught up with growing inflation, leaving people worse off as we look to Christmas. Experts are concerned that current pay rates are ‘undermining’ recent employment news. Unemployment rates across the country are at their lowest since 1975, with the number of PAs in Britain expected to surge in the next few months, but under current inflation workers will still feel the struggle this holiday season.
“The combination of lagging pay rises and ever increasing levels of inflation will leave many workers feeling the squeeze again,” said Ian Brinkley, acting chief economist at the Chartered Institute for Personnel and Development. “Given there is little prospect of pay picking up in the near future, people will be forced to tighten their belts well into the Christmas period, putting additional pressure on already tight pay packets.
“In order to boost pay, the Government need to place a much stronger focus on boosting workplace productivity in their industrial strategy,” continued Brinkley. “Businesses will be required to continue to pursue all avenues in order to fill labour demand, especially if Brexit negotiations result in additional restrictions on migrant labour supply.”