Regular UK salary tightening worsens; Markets hit by China Covid fears – Business live | company
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Pressures on the cost of living in the UK have intensified, with basic wages lagging inflation at the fastest rate in over seven years.
The latest employment numbers just released show that regular real wages (adjusted for inflation) fell 1% Year after year in the three months to January. This is the sharpest drop in regular real wages since May-July 2014 (it also fell by 0.9% at the start of the pandemic).
Due to strong bonus payments over the last six months, total compensation increased by only 0.1% in real terms.
Wages went up nominally Conditions: Total compensation (including bonuses) increased by 4.8%, while regular compensation (excluding bonuses) increased by 3.8% in November-January 2022.
But those pay rises were undermined by rising prices — CPIH inflation (the ONS’ preferred measure of inflation) averaged 4.8% for the quarter.
And the squeeze will continue in the coming months as higher energy and food prices push up the cost of living. Consumer inflation is expected to rise above 7% by April.
Office of National Statistics (ONS)
(@US)
After adjusting for inflation, the average wage including bonuses increased by 0.1% in the year from November 2021 to January 2022, while it decreased by 1.0% excluding bonuses https://t.co/aQD7xRiAOQ pic.twitter.com/l0Rjrqwn84
March 15, 2022
The report also shows that the UK unemployment rate fell again to 3.9% from 4.1% three months earlier – back to pre-coronavirus pandemic levels.
But while the employment rate rose 0.1 percentage point to 75.6%, it was still 1.0 percentage point below pre-pandemic levels due to the decline in self-employment.
There were nearly 32.5 million people in employment — 380,000 more than last year, but still 580,000 fewer than before the pandemic.
Job vacancies rose to a new record 1,318,000 in the three months to February as companies struggled to fill vacancies.
Office of National Statistics (ONS)
(@US)
From December 2021 to February 2022, there were an average of 1.318 million job vacancies, compared to 1.213 million in the previous quarter https://t.co/DMbHJG1dqA pic.twitter.com/7TPsEJNcL3
March 15, 2022
The number of employees on company payrolls hit a new record high in February, rising by 275,000 to a new record of 29.7 million.
Further details and justification follow.
Also arrives today
Stock markets are on edge as Covid-19 infections soar in China, raising fears more lockdowns could be imposed to slow the pandemic.
Domestically transmitted cases more than doubled to 3,507 yesterday, testing the country’s strict “dynamic declassification” approach to Covid.
A province of 24 million people went into lockdown yesterday, prompting companies like Apple supplier Foxconn to shut down work.
Hong Kong hang senG Index, which hit a six-year low yesterday, is down another 6% today.
PiQ
(@PriapusIQ)
🇭🇰 Esshh.. It’s dark in Hong Kong
~ Hang Seng Index down more than 6% pic.twitter.com/GJu23bq4PE
March 15, 2022
European markets are expected to open lower.
IGSquawk
(@IGSquawk)
European Opening Calls:#FTSE 7156 -0.52%#DAX 13860 -0.49%#CAC 6335 -0.54%#AEX 670 -0.71%#MIB 23225 -0.86%#IBEX 8184 -0, 61%#OMX 2087 -0.43%#SMI 11595 – 0.72%#STOXX 3720 -0.57%#IGOpeningCall
March 15, 2022
Britain is expected to name hundreds of oligarchs, individuals and organizations with ties to the Putin regime to be put on the UK sanctions list after economic crime legislation was sped up last night.
Investors are also watching Russia, which faces a $117 million debt repayment tomorrow. Last night Moscow said it had started the payment process, but it’s not clear whether the payment will be in US dollars – the currency in which they were issued – or rubles.
With much of Russia’s foreign exchange reserves frozen, it may not be able to make the dollar payments, meaning it could (after a 30-day grace period) default.
The agenda
- 7am GMT: UK jobs report
- 7:45 GMT: French inflation for February
- 10am GMT: ZEW Eurozone Economic Confidence Survey
- 12:30 GMT US PPI measurement of US Producer Prices for February
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