Our Scans · (FS.6.01) Employment & Wages · Weekly Summary

• [New] The Bank of England has a target to keep inflation at 2% and if wages continue to grow there is a risk it could head higher. BBC News
• Where UK employers are looking to employ migrant workers who are being sponsored under the Skilled Worker category for the first time, they will need to ensure that the salaries that they are offering meet the significantly higher minimum salary thresholds for the Skilled Worker category. The Mobile Workforce
• Europe's biggest economy has been hit by a series of disruptive and costly stoppages affecting air and rail travel as workers demand higher wages to cope with the impact of inflation. MarketScreener
• Fitch expects world growth in 2025 to edge up to 2.5% as the eurozone finally recovers on a pick-up in real wages and consumption - but US growth slows. ThePrint
• Inflation has dropped to 3.1% year on year, and we think it will be at 2.5% by December, as wages growth moderates and helps to reduce services inflation which should allow the US Federal Reserve to cut interest rates by mid-2024. Amp
• The Bank of Japan is hoping that 2024's Shunto wage negotiations will spur pay growth and generate more sustainable inflation. investing.com
• Greater expectations of employers Innovative benefits packages will become mainstream and will be pivotal in the race for talent in 2024. Human Resources Online
• Despite encouraging signs of cooling inflation, ECB monetary policymakers remain cautious, mainly due to concerns about rapid wage growth in the services sector, which could continue to fuel inflation. Young Platform
• The UK government is running a pay transparency pilot scheme under which participating employers will disclose salary in the job advertisement and not ask about salary history. Travers Smith LLP
• We expect 2024's National Living Wage to be around 70% higher than the first National Minimum Wage introduced 25 years ago - the highest ever in real terms. GOV.UK
• An expansion in real wages and uptick in population growth will support private consumption in 2024, boosting Iceland's economic growth. Fitch Solutions
• Minimum salary updates: Estonia increased its minimum wage and various minimum salary levels, New Zealand increased some minimum wage amounts, and Singapore will be increasing the minimum salary for Employment Passes in 2025. Fragomen, Del Rey, Bernsen & Loewy LLP
• Japan is expected to see growth above potential, rising wages, sustained inflation, and a gradually normalizing monetary policy. Alantra
• Many employers plan to raise pay by around 5% in 2024, while the minimum wage - a big influence on hospitality and retail pay - is due to rise by 10% in April. Yahoo Finance
• Even the ONS agrees that, despite elevated wage growth, there is very little risk of a wage-price spiral in the UK: in the past year, wages have only contributed to inflation in a similar way as they have done in previous years. Labour Research Department
• In a world where wage growth is moderating, pricing power is diminishing and monetary policy remains restrictive, we believe inflation will continue to move toward the Fed's target. CNN
• With core inflation proving stubborn, wages continuing to rise, and geopolitical uncertainty persisting, the Bank of England interest rate is expected to fall only slowly. Cambridgeshire Chambers of Commerce
• With economic growth picking up, the BoE will be afraid to cut interest rates too quickly for fear that high wage inflation will lead to a rise in broader above-target inflation in 2025. UK - EN - Institutional
• Pay growth slowed sharply in November, easing fears of an inflationary wage-price spiral and raising hopes that the Bank of England can cut interest rates sooner than expected. The Telegraph
• Turkey's annual inflation rate climbed to 64.77% in December, sustaining an upward trend that is expected to continue in coming months after a big rise in the minimum wage. investing.com

Last updated: 23 April 2024