The article discusses how anticipated inflation increases may not translate into higher wages due to a weak job market. Bank of England policymaker Catherine Mann indicated that the labor market has stagnated, with nearly no new job additions. She predicts further job cuts and a slowdown in hiring, attributing this slack to the Chancellor's recent budget measures, particularly the rise in employers' national insurance contributions. Additionally, the Bank's forecast suggests inflation could reach 3.7% later this year, complicating the wage outlook further.
"Already, the labour market has all but stopped adding jobs with employment nearly flat."
"Mann said there will be an increase in job cuts and companies will slow down hiring, this will restrain pass-through to wages."
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