Britons looking for job noticed yearly growth in advertised salaries for the first time in over two years last month, as Adzuna employment search firm’s data shows. And though the average advertised pay rose by 1.2% to £32,598, it’s lagging behind the rate of inflation, which climbed past 3% in November.
The difference means an ongoing pressure on household budgets and it is forecasted to keep that way in the coming year. People’s real income went down in 2017, when the weaker sterling drove up prices and average wage rise stopped somewhere above 2%.
Economists expect inflation to slow the pace, but a warning from the Resolution Foundation came earlier in the week that it anticipates real income will not grow in 2018. Similar messages followed from the Confederation of British Industry, which expects real income will suffer from rather high inflation and low wage rise.
The business lobby group’s index of private companies production did better in October-December period of 2017, but the beginning of next year is forecasted to be a little worse, as it said. The long-term situation depends a lot on the developments in Brexit negotiations, it also said.