Bank of England and businesses say firms raising wage offers to find staff, as level of unemployment drops and Brexit vote cuts number of EU workers in UKA shortage of factory workers is starting to push up pay rates but wage rises in the services sector remain rooted at around 2%, according to the latest feedback from the Bank of England’s regional agents. The report appeared to justify Threadneedle Street’s move last week to increase interest rates, which officials at the bank said was needed to dampen the inflationary effects of wage rises. It warned that higher pay offers were also needed to counter a growing shortage of EU workers ahead of Brexit. “We already know that EU workers are leaving because of the uncertainties they are facing right now,” said Kevin Green, REC’s chief executive. However, shortages highlighted by recruitment agencies have yet to feed through into official pay figures, which show that average wages growth across all sectors remains muted.

Source: The Guardian November 08, 2017 17:26 UTC