Britain is set for the widest range of wage increases in more than a decade, CBI says


London — Confederation of British Industry (CBI) data show more UK employers raise salaries since the global financial crisis due to struggling to hire staff after the coronavirus pandemic and Brexit I am planning.

The CBI said 44% of companies intend to raise wages in line with inflation and 24% plan to raise wages above inflation. This is the highest total percentage since we started our survey of companies in 2009.

Matthew Percival, Director of Skills and Inclusion at CBI, said:

But he warned that companies are likely to pass on higher wages to their customers unless productivity increases.

The outlook for price increases may be related to the Bank of England, as policymakers from the Bank of England meet this week. BoE expects short-term inflation to rise due to rising oil prices and supply chain bottlenecks, but so far it says it does not anticipate sustained inflationary pressure from the employment market. ..

Just over three-quarters of the 422 companies polled by CBI and recruiter Pertemps Network in late August said labor shortages hurt their competitiveness, the highest percentage in more than five years.

The CBI has renewed its call on the government to ease post-Brexit visa restrictions on European Union workers with high-demand skills.

Separately, Make UK, a manufacturing industry group, has seen its members see the fastest growth in production in more than 30 years, with production at pre-pandemic levels faster than previously predicted by the end of 2022. He said he expected to return to.

“Manufacturers’ growth prospects continue to accelerate as domestic and international economies continue to open, but supply chain shortages and rapid increases in transportation costs can impede the path to faster growth. Yes, “said Stephen Fipson, Chief Executive Officer of the United Kingdom.

Make UK also criticized the recent government’s decision to raise employers’ social security contributions.

David Milliken