Wages Continue To Be Squeezed
New figures this week have shown that the rate of unemployment in the UK is falling, yet pay is still stagnating and failing to keep up with inflation. At the same time, many large businesses have announced job cuts meaning wages continue to be squeezed as companies cut costs.
Sainsbury’s to trim 2,000 jobs
The supermarket is cutting jobs in a bid to save £500m over the next three years. The jobs the business is looking to cut is around 1,400 staff from its human resources and payroll departments.
Vauxhall plans 400 job cuts
Due to falling sales figures, the car manufacturer will end up 400 staff lighter. The job cuts will be at its Ellesmere Port car plant, which makes the Astra models, the planned cuts will see it move staff from two production lines to one in early 2018.
Nearly 2,000 jobs lost at BAE Systems
The defence business will cut 2,000 jobs starting from January 2018, with around 375 lost in the maritime sector and approximately 1,400 jobs to be cut within the military air business across the five sites over the next three years.
Wages Continue To Be Squeezed But We Can Help
Firstly, it is perfectly clear that the UK economy is great at creating new jobs but hopeless at generating pay rises for employees already in work. Employment is up by more than 300,000 people over the past twelve months. However, average earnings growth is reported at just 2.2% which is slightly lower than it was in the summer of 2016.
Secondly, while employment in the UK has been a lot stronger than was predicted in the lead-up to the Brexit referendum vote, the pace of employment growth has eased in the three months to the end August 2017.
Finally, there is no end in sight for the drop in real inflation-adjusted wages which have now fallen for the sixth month in a row. The Resolution Foundation reports that real average wages are no higher now than they were back in 2016.
It is likely to be well into next year before real pay growth overtakes the rate of inflation – and this relentless squeeze on living standards will have many retailers nervous as the key Christmas period is upon us. Consumers now face a choice: tighten their belts or fall deeper into debt.
Here at Assured Wealth & Estate Planning as wages continue to be squeezed, we are here to help you juggle your personal finances and plan for your future retirement. Our Assured Wealth & Estate Planning Liverpool Financial Adviser, West Kirby Financial Advisor, Manchester Financial Adviser, Wilmslow Financial Advisor, Altrincham Financial Advisor, or Warrington Financial Advisor teams can help with your financial planning.