Average Pay Falls In Real Terms
Further to our previous article, the latest statistics from the Office for National Statistics (ONS) show that average pay in the 3 months to December 2021 increased by 4.3%, inclusive of bonuses, and by 3.7%, exclusive of bonuses.
The rate of the increase in average pay inclusive of bonuses is up 0.1% since the 3 months to November 2021 (up from 4.2% to 4.3%), but down 0.1% with respect to the amount exclusive of bonuses (down from 3.8% to 3.7%).
However, the key issue in relation to the latest average pay statistics is that in real terms, once adjusted for inflation, average pay actually fell. Inclusive of bonuses, average pay fell by 0.1%, whilst exclusive of bonuses, average pay fell by 0.8%.
The fall in real average pay is a continuation of the trend detected in the figures for the 3 months to November 2021, in which average pay exclusive of bonuses remained static at 0%
Real wages may very well continue to fall, with Inflation as measured by the Consumer Prices Index (CPI) having increased again in the 12 months to January 2022 to 5.5%. That is up 0.1% from 5.4% in December 2021.
However, the ONS point out that: "On a monthly basis, CPI fell by 0.1% in January 2022, compared with a fall of 0.2% in January 2021."
The real terms fall in average pay is the first since July 2020
The senior economist at the Resolution Foundation, Hannah Slaughter, stated: "Despite widespread talk of returning wage spirals, Britain is instead experiencing the return of shrinking pay packets...The latest period of falling real wages – the third in a decade – is likely to have started as a far back as last summer, and is likely to continue beyond next summer too."
Half Of UK Employees Looking To Change Job
According to new research carried out by HR company, SD Worx, 50% of UK employees are looking to change jobs, with the main motivating factors being pay (24%), poor working conditions (14%), poor promotional opportunities (10%), lack of job security (9%).
With average pay falling in real terms, as we highlighted above, and with labour shortages throughout the economy, the numbers looking to change job in search of higher salaries is likely to remain high for the foreseeable future
Commenting on the findings, the UK HR Country Lead at SD Worx, Colette Philp stated: "Companies must be vigilant when it comes to ensuring employees are happy in their roles. It’s a buyer’s market for jobs, and employees know they can call the shots for opportunities that lie ahead...This is why employers need to get the practical basics right and ensure employees feel genuinely valued. Ironing out benefits packages, company perks, motivational pay policy and career progression, as well as ensuring a pleasant working atmosphere, can all help boost employee engagement."
Philp added: “If any company wants to continue on a strong growth trajectory, then it’s vital to showcase company commitment to workforce wellbeing, not only to limit Great Resignation talent attrition, but to attract the highest calibre of candidates for future vacancies too."
Dr David Mackereth v Department of Work and Pensions (DWP)
As we highlighted in a previous article, following the ruling in the Employment Appeal Tribunal (EAT) in the case of Maya Forstater v CGD Europe and Others: UKEAT/0105/20/JOJ, that gender-critical views constitute protected beliefs, two cases containing similar issues are due to be heard by the EAT soon.
One of those cases is the case of Dr David Mackereth v The Department for Work and Pensions (DWP). News has now come through that that case is now due to be heard by the Employment Appeal Tribunal (EAT) on the 28th - 29th March 2022.
