Unemployment is low – so why aren’t wages improving? | The Spectator
spectator.co.uk/article/unemployment-is-low-s...Posted May 17, 2022, 6:04 PM UTC
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spectator.co.uk
Kate Andrews doesn’t know 🤷🏻♂️
Why isn’t there more understanding of the inactivity rate? Doesn’t the ONS do a labour force survey as part of the tracking of employment figures?
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Probably because the biggest factor in wages is the relationship and relative bargaining strengths between employer and employees. The current balance is too strongly in favour of employers.
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Wages are improving in nominal terms, but not keeping up with inflation. High inflation is the problem here.
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But wages are increasing due to high inflation, cost of living is going up so workers are demanding increased salaries and giving the labour shortages companies are required to appease workers.
It's circular. High inflation > wage increases > higher inflation > increased wages > high inflation and so on.
That's the big issue, there's no easy solution.
Difficulty is that productivity which normally leads to wage increases has fallen so companies are struggling to pay higher wages. A lot of businesses could become uneconomical.
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Is it... because we're entering the end game of capitalism/empirical decadence phase, and are going to collapse into storms of anarchy washing around the ivory gates of the elites? Or sutin?
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Because British management is awful and divert all profits to pointless consultants or their own pockets.
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Because Employers are exercising their right to offer low wages in order to keep profits high and Employees are exercising their right to not accept a deal that would get them sanctioned by their Universal Credit Work Coach.
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Wages went up more than 5%, that’s a huge hike. But nothing can overcome the inflation caused by paying people to stay at home and do nothing with no way to spend it.
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"and changes to immigration rules under Brexit, which are preventing lower-wage workers abroad from entering the UK labour market."
Wrong, non-EU immigration is increasing and the skills and salary caps for non-EU migrants have been lowered.
But they're still much higher than the salary caps and skill requirements for EU immigrants while we were in the EU... which were non existent.
So it's definitely not wrong.