The highest wage growth in 11 years was recorded in the UK in June, with wage growth climbing to 3.9 per cent, according to the latest data from the Office for National Statistics (ONS).
The BBC reported on the figures, noting that the employment rate is also at 76.1 per cent. That means a record high of 32.81 million people were in work in June, 425,000 more than a year earlier.
However, there was a slight increase in the unemployment rate between April and June, and the news provider noted that there was also a 0.2 per cent contraction in the UK economy in the second quarter of this year.
One economic think tank recently recommended that increasing people’s wages and giving them more public holidays would make the economy more productive. The New Economics Foundation argued that giving consumers greater spending power and more time to spend their money would encourage firms to boost productivity.
Alfie Stirling, head of economics at the think tank, said that this kind of solution “should now be part of a radical mix of options for any government that is serious about increasing productivity in a way that works for people and society”.
The Independent explained that weak demand can affect productivity because it discourages businesses from making costly investments that would improve efficiency over the long term. Therefore helping boost demand among consumers could help encourage companies to put more money into making efficiency gains.
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