UK wage growth in full swing over the last ten years, employers hiring Brexit

LONDON (Reuters) – UK workers' pay has risen at its fastest pace in more than a decade, fueled by additional job creation, adding that uncertainty over Brexit is prompting companies to hire workers rather than investing in equipment in the long term.

Total revenue, including premiums, rose 3.5% a year in February, according to the Office for National Statistics, which is the median forecast in a Reuters survey of economists.

This was the highest rate since mid-2008, although only in February, the pace of wage growth slowed.

Average weekly earnings, excluding bonuses, rose 3.4% year-on-year, which is also in line with the Reuters survey.

This was the first decline in this measure of wage growth since the middle of last year.

The UK labor market has challenged the Brexit approach, helping households whose spending stimulates the economy.

However, the rise in employment could reflect the nervousness of companies that have reduced their investments, making them more likely to hire workers likely to be fired in the event of a downturn in the economy. ;economy.

The ONS said that employment had risen by 179,000 over the three months ending in February, according to the Reuters poll forecast.

"The job market remains robust and the number of people in business continues to grow," said Matt Hughes, an ONS statistician. "The increase over the last year comes entirely from full-time workers, employees and freelancers."

The strength of the labor market pushes the official wage measure faster than the Bank of England provided, which has led some economists to think that it could raise interest rates when the Uncertainty surrounding the Brexit will dissipate.

The BoE forecast in February that wage growth would slow to 3.0% by the end of 2019, as the economy felt the flow of Brexit uncertainties and the global slowdown.

According to forecasts, the British economy is expected to experience the weakest economic growth of the decade, even though it avoids the shock of a Brexit without agreement.

The pace of wage growth remains slower than the 4% increase observed before the financial crisis.

(Report by William Schomberg and Andy Bruce, [email protected], +44 207 542 7778)