Finances Look Set to Improve as Wages Rise

14th May 2018. 

Wages are rising at their fastest rate in three years as a strong jobs market and growing skills shortages force employers to improve pay.

Finally, economic conditions are set to improve. While employers are still struggling to find skilled workers, the subsequent rise in wages is expected to have a positive influence on household budgets. According to predicted data from the Office for National Statistics, average wages rose by 2.9 percent in the 12 months to March.

This would represent an acceleration from  February, with low unemployment and low inflation complimenting the brighter economic outlook. The Telegraph further revealed that price rises slowed to 2.5 percent in March, making the typical worker’s standard of living considerably improved from the previous year.

This brighter picture is not only good news for individuals and consumers, but a renewed financial confidence could also tempt crowds back to the high street. Low turnout is still worrying many retailers, with penny-pinching consumers historically concerned with spending money on non-essentials. With political uncertainty dispersing and the economy lighting its load, consumerism could finally get back on track. Here at the Credit Protection Association, our debt recovery services will be on hand to help and fasten up the process.

One factor pushing up pay is that more workers are changing roles by moving from one job to another, a statistic which the Bank of England monitors closely as an indicator of wage growth, as it is often traditionally a reliable way for people to gain a substantial pay rise.

“Unemployment has fallen back significantly and churn in the labour market has recovered, with the proportion of people moving from one job to another now around its pre-crisis rate,” said the Bank of England in its Inflation Report.

“That suggests some recovery in confidence among employees in their labour market prospects.

“As a result, businesses have needed to raise wages for new recruits in order to attract staff.”

The Bank’s economists expect pay growth to remain at around 2.75pc for the rest of this year.

In 2019 that should rise to 3.25pc, then on to 3.5pc in 2020, officials ­anticipate.

The economic picture is no longer one of ‘doom and gloom’, with low inflation, accelerated wage growth and a more certain political landscape, all strengthening British prospects for the year ahead.

To encourage consumers to utilise their new financial freedom in high street retailers, businesses need to make their storefronts and services as enticing as possible to gauge interest. New renovations, additional services and new technology and equipment could all make a welcome change to profits!

At the Credit Protection Association, our debt recovery services chase down unpaid invoices and late payers and give our members the opportunity to explore expansion and pursue improvements to their business. Our credit management products, from credit checks to company directories, also provide necessary security to keep our members firmly rooted on the high street for the foreseeable future.

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

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