The Office for National Statistics has announced today that wage growth in the UK is on the rise. This revelation comes at a time when official government statistics show that unemployment is dropping across the country. Between the months of August and October, bonuses and average earnings were up by an impressive 1.6%. Could this spell the end of our most troublesome job market period in recent memory? Experts say that it could. Even so; we’re not out of the woods yet, and a lot could still go wrong. Today, we’re going to take a look at some of the factors that have led to a vast improvement. Hopefully, highlighting them will help everyone to understand the state of the UK at the current time.
Why unemployment has fallen:
For the last six years, most consumers have been hesitant to spend money on major purchases due to the fear of an unstable economy. Thankfully, things have been picking up for the last twelve months. That goes part of the way towards explaining why there are more jobs available. When businesses make higher profits, most of them start to create new roles or expand.
More new businesses
In 2012, the UK government announced that business rates would be scrapped for new companies. That helped to encourage thousands of people to start businesses in many different industries. Indeed, more new firms have been launched in the UK over the last twelve months than at any point during the previous five years. More businesses on the market always means more jobs.
Why wages are on the rise:
Most business owners have been investing more money in the latest technology over the last few months. That means they are spending less on completing processes within their company. As that helps profits to rise, it makes sense that wages should rise too. Advanced communication solutions have played a big role. Firms that deal with Mitel maintenance in London and all over the country have effectively saved company bosses thousands of pounds. Likewise, the rise of cloud computing means less cash is being spent on high-tech security systems.
A better economy
Some businesses survived the recession better than others. Even so; most owners were scared to increase wages in case the tides started to turn. Now that can see the light at the end of the tunnel, bosses are more inclined to help their workers. While the economy hasn’t recovered completely, things are much better than they were only a few months ago. Will we continue to see wage rises as things improve even further? That remains to be seen.
We hope we’ve managed to set the record straight in this article. While it can be hard to work out exactly why things happen in the business world, there are usually some good indications. At the end of the day, wage and unemployment figures are always going to fluctuate slightly. It’s just that things seem to be tipping in favour of the worker at the current time.