UK hourly labour costs grow at fastest pace in two years | Fin24
 
  • Another VAT hike?

    Absa warns that govt may again announce an increase in value added tax in next month's Budget.

  • SA Revenue Service

    The tax agency says a unit that tackles illicit financial flows has recovered R2.6bn since April 2019.

  • State Capture Inquiry

    Former Eskom chairperson Zola Tsotsi says Tony Gupta threatened to have him removed.

Loading...

UK hourly labour costs grow at fastest pace in two years

Mar 16 2018 14:29
Andrew Atkinson, Bloomberg

London - UK labour costs are rising at their fastest pace in more than two years, figures on Friday showed.

The cost of employing someone for an hour of work rose 3.7% in the fourth quarter compared with a year earlier, up from 3.1% in the previous three months and the most since the July to September period in 2015, the Office for National Statistics said.

While the increase partly reflects a drop in the number of hours worked in the fourth quarter, firms could face pressure to protect margins by raising prices unless there is a pickup in productivity. From the third quarter, labour costs were up 1%.

The government’s fiscal watchdog remained downbeat about productivity in it latest forecasts published on Tuesday, predicting output per hour would grow less than 1% on average over the next three years.

The increase in labour costs over the past year was driven by non-wage expenses, which jumped by 6.5%. That includes national insurance and pension contributions as well as sickness and maternity pay. Wage costs rose by 3.1%.

Pressures were strongest in the private sector, where labour costs climbed by 4%.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

uk  |  labour  |  jobs  |  economy
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...