UK: Falling real wages look likely to come to an end - RBS

Analysts at RBS note that it was a welcome relief as UK average wages rose by 2.8%y/y in the three months to January and is the fastest rise in almost three years.

Key Quotes

“Pay growth will soon catch up on rising prices. Still, until 2008 wages tended to rise by about 4% a year. The reason why strong jobs growth hasn’t boosted pay by more is due to supply. The share of total population in work is higher now than it was in the 1970s, despite an extra five million people aged 60 and over. Female participation, those joining from abroad and more people working longer have all played a role.”