Wage growth refers to the increase in the amount of compensation received by employees over a specific period, typically expressed as a percentage. It indicates how much wages and salaries rise, reflecting changes in the labor market, inflation rates, productivity, and other economic factors. Wage growth can occur due to various reasons, including increased demand for labor, a tight labor market where employers compete for workers, or new labor laws and regulations that raise minimum wages. Higher wage growth can lead to improved living standards for employees, while stagnant or declining wages can indicate economic challenges and reduced purchasing power. Overall, wage growth is an important indicator of economic health, influencing consumer spending, job satisfaction, and overall economic growth.
Despite the prevailing uncertainties surrounding inflation and the job market, wage growth in the United Kingdom managed to defy predictions in the final quarter of 2023. Although it slowed down,…