20-year high in wages and the impact this is having on business.
This continues to be the case. I can see this with my clients and the rates of pay they are having to offer to secure good-quality candidates and this isn’t showing any signs of slowing down.
The most recent UK data released in November 2022, the ONS shows some key headline numbers which won’t come as a surprise to anyone in the business of recruiting people.
- For full-time employees in the UK the average salary is now at £33,000 while part-time (including the gig economy) is now at £12,247, making the average salary now £27,756, which is a rise of over 6% year on year for full time and 8.6% for part-time workers.
- 40-49yr olds were the age bracket that earned the highest average salary, but 18-21yr olds earnt the lowest at £12,451.
- CEO Salaries have been one of the hardest groups affected with a reduction of around 25% in take home since 2019, an average salary of a CEO in 2019 was £97,497 which has dropped to £72,671 in 2022.
- Some of the more unusual job roles that have seen significant rises year on year are Librarians who have seen salaries grow by up to 26%, House parents and residential wardens have seen jumps of almost 23% along with Restaurant and Catering managers. Some of this can be attributed to the post-Brexit movement, but also many restaurants made staff redundant during the lockdown and now they are struggling to recruit back into the sector.
- There has also been a return to the widening of the gap between private and public sector jobs, with the private sector seeing increases of around 7% in comparison to the public sector which is lagging behind at 3%. These pay packet differentials and the impact of inflation on the cost of living is driving many public sector workers to strike. The current estimate is the UK has lost 2.5m working days in 2022 due to industrial unrest and this is continuing into 2023. The current days lost are now the highest since Thatcher’s days.
Although we are seeing these high salaries, they are not keeping pace with inflation and in real terms, wages fell by 2.6%.
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