Wage growth in the UK is growing at a record rate, according to data collected by Indeed Hiring Lab that cast doubt on other reports showing the labor market may be loosening.
Jobs advertised on the Indeed’s site in May offered paid 7.2% more than a year ago, the highest pace since the wage tracker’s inception in 2019. It’s also stronger than the 6.7% gain indicated by official data in the three months through March.
The figures add to concerns about an inflationary spiral in the UK, with workers bidding up wages to make up for soaring prices across the economy. The Bank of England is widely expected to keep raising interest rates to halt those pressures.
“Wage growth that continues to come in at or near record levels will make the Bank’s decision about when to stop raising interest rates more difficult,” says Pawel Adrjan, Indeed’s director of EMEA economic research.
“High readings of our tracker in the UK suggest wage growth for all workers, as measured by official statistics, will likely stay high in the coming months,” he added.
Compared to other developed countries the UK is experiencing unusually high pay growth, according to Indeed. In the US wage growth has slowed from a peak in 2022, while figures have leveled off in the European Union.
Indeed’s findings contrast with another report out earlier Thursday from the Recruitment and Employment Confederation, which showed Britain’s labor market cooled last month with the quickest increase in the supply of workers in 2 1/2 years. Both will feed expectations for official data due next week.
Indeed said:
- Nursing, retail, customer service, cleaning and food preparation jobs saw the strongest pickup in wages
- Pay was supported by government pay deals for striking nurses and April’s National Living Wage increase
Read more:
- Wage Growth Is Slowing Sharply in Indeed’s US Job Postings
- Britain’s Labor Market Loosens With More Returning to Workforce
- England’s Graduates Face the Worst Jobs Market in Years
(Adds comment from research director)