UK political and economic uncertainty taking toll on wage packets in the UK

UK political and economic uncertainty taking toll on wage packets in the UK

Jobrapido CEO says now may be a good time to re-train, acquire new skills and change careers

The average salaries in any given country always depend on broader economic and political picture. Among the factors that influence the rates – unemployment levels, market conditions, cost of living, political climate, globalization impact, and many other aspects at both local and international levels.

Salary rates’ dynamics in the UK have seen considerable fluctuation throughout the last decade. From a retrospective point of view, the UK wage growth, due to different economic and political factors, ‘averaged 2.87 percent from 2001 until 2019, reaching an all-time high of 6.60 percent in February of 2007 and a record low of -2.60 percent in March of 2009.’ The Office for National Statistics offers an in-depth bulletin related to earnings and working hours in the UK.

Exploring this topic of high society and media interest, new important data from Jobrapido survey reveals the majority of UK salaries (53%) have suffered pay-freeze or decrease over the past 12 months. The research examined the salaries of more than 1.2 million jobs across more than 20 different industry sectors across the UK between the period of July 2018 to July 2019.

Nearly a quarter of salaries (24%) have frozen whilst nearly three in ten (29%) have decreased. Those falling victim to stagnant salaries included employees working in sales/Personal Care and a wide range of management occupations. Those working in education, training, business and financial operations as well as computing, mathematical occupations have suffered and taken less in their salary over the last year.

With an 8% drop (about 4,500£ less year over year), Computer and Mathematical Occupations is by far the category that suffered the most significant salary reduction, also representing almost 11% of the workers.

Industry sectors which have bucked the trend (47%) and shown salary increases include legal occupations, life and social science occupations, construction, architecture, design and farming and fishing industries.

For more than 1 on 4 of these sectors (26%), the increase has been lower than 3%, while just a few categories had a growth over 5%. Legal Occupations, representing just 1,5% of salaries, registered the most significant increase, more than 7,5% (about 3,200£ more year over year).

Rob Brouwer, CEO of Jobrapido comments:

Undoubtedly the climate of political and economic uncertainty in the UK has taken a toll on people’s salaries over the past twelve months and the latest forecasts from the OECD predict no-deal Brexit will slice almost 3% from the UK economic growth over the next three years compared with just 0.6% from the rest of the EU. But, of course, it remains to still be seen what happens at the final Brexit hurdle.

“That said, nearly half of UK salaries have shown modest increases and there is a growth of new jobs in most of the technological and fast-growing AI related fields, where demand far outweighs supply and those who have the skills are being rewarded with princely salaries.

“Whilst UK workers may have to brace themselves for a time of salary-stagnancy, current climate presents a good time to re-evaluate career paths and look at acquiring new skills or even re-training in a new occupation. Perhaps it is time for make this happen and seize available opportunities despite adversity.”

Jobrapido is the world’s leading job search engine working closely with large corporate clients, staffing agencies and job-boards matching the right candidates with the right roles at thousands of companies around the world, helping companies to get the best candidates on demand. For further information click here!