Cost of living crisis

HR 'under pressure' to help staff as inflation outpaces wage growth AGAIN

Call us: 01462 481005

The cost of living continues to outpace wage growth in the UK, prompting concern among some experts about how HR will handle the pressure of supporting staff while also competing in the labour market.

Latest figures of the Office of National Statistics (ONS) show that wages rose between October and December 2021, but when taking inflation into account, average pay fell by 0.8% from a year earlier.

As reported by the BBC, the new ONS data also found that employees' regular pay, excluding bonuses, grew by 3.7% during this time frame.

However, the rising cost of food, energy and household goods has pushed inflation up by 5.4% in the 12 months to December, the BBC said, meaning that real wages fell by 0.8%.

And the Bank of England has warned that this squeeze will continue, with inflation set to rise above seven per cent in 2022.

Read more here