I mentioned in yesterday's daily that a recent article in the Guardian on a post-Brexit vote labour supply shock in the UK was missing the key element of wage stagnation. So it's interesting to see the Guardian highlighting how inflation-adjusted wage growth is diminishing, even as data released today reveal that unemployment rates in the UK has hit a 43 year low.
UK real wages falling again
Here's how the Guardian puts it:
Pay growth in Britain has slowed to its weakest in almost a year despite a fall in the jobless rate to a fresh 43-year low and the biggest annual drop in workers from the EU since modern records began more than two decades ago.
Figures from the Office for National Statistics (ONS) showed wage inflation cooling in the second quarter of 2018 even though unemployment fell...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.