Brexit: Geoffrey Boycott forecasts EU 'break up' in 2019 interview
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Wages in Brexit UK have surged higher following the reopening of the economy amid fears over the impact of inflation. The latest labour market figures from the Office for National Statistics (ONS) revealed that total earnings, including bonuses, rose by 8.8 percent for the three months to June against the same period last year.
Meanwhile, earnings excluding bonuses were up 7.4 percent for the period, in line with analyst predictions.
The minimum wage in the UK was also increased by 6.2 percent for employees over 25.
The hourly minimum wage increased to £8.72.
It was “the largest increase in value” since the creation in 2016 of the minimum wage in its current form, and it affected 2.8 million Britons.
The increase exceeds the hourly rate of the French minimum wage which stands at £8.68 (€10.15).
In France, finance minister Bruno Le Maire is urging company bosses to make an effort to increase wages for their employees.
Speaking to France Info on Monday, Mr Le Maire said he expects “better remuneration for those with the lowest incomes”.
He also called on companies “to hire young people and apprentices on a massive scale”.
The stark comparison between the two countries sparked calls for France to leave the EU.
Generation Frexit leader, Charles-Henri Gallois, blasted: “Brexit UK, sovereign again:
“The minimum wage increased by 6.2 percent on April 1, 2020 by government decision.
“The increase of wages is 8.8 percent.
“Macron’s France in the EU?
“We implore wage increases that never happen.
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Bank of England governor Andrew Bailey recently highlighted wage increases as one factor that could lead to longer-term inflation rises, although he suggested hikes could subdue as the pandemic comes to an end.
At his annual Mansion House speech to the City last month, he warned a slowing of wage growth could only happen if more people returned to the workforce.
The governor said: “We could … see wage pressures arising if the number of people in work or seeking work does not return to pre-Covid levels, and inactivity remains at a higher level. A return of labour supply is therefore important.”
However, industry analysts said on Tuesday that the leap in wages is unlikely to concern the Bank of England’s monetary policy committee (MPC) yet.
The ONS said the rise in earnings was particularly high as many people who had been receiving furlough payments during the three-month period last year were now receiving full pay.
UK RSM economist Tom Pugh said: “At first glance, the surge in headline pay growth to 8.8 percent is another reason for the Bank of England to start raising interest rates next year, but headline pay has been inflated by base and compositional effects.
“What’s more, payroll data suggests there were about 200,000 fewer people in employment in July than before the pandemic.
“As such, there is enough slack in the labour market to prevent wage growth concerning the MPC.”
Consumer Price Index (CPI) inflation increased to 2.6 percent in its latest reading last month and analysts will be keen to find out if it has risen further in an update on Wednesday.
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