Shortage of factory workers starts to push up pay rates
by Phillip Inman from on (#37D0S)
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 UK
A 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 central bank said its agents, which are based in offices across the country, found that shortages this month across the manufacturing sector were leading to a "slight increase in pay growth" that would take average rate of pay rises up by half a percent, from 2-3% this year to 2.5%-3.5% in 2018.
Related: UK firms expect higher pay rises, as Brexit hits investment plans - business live
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