Major win for Brexit Britain as wages soar after uncontrolled migration brought in check
While the wage growth is welcome, there are concerns that any increases have been wiped out by the cost of living crisis.
Brexit Britain has landed a huge win after an economist says leaving the European Union has resulted in wages soaring.
Economists have said that a drop in immigration from the EU has meant British workers have more bargaining power and the ability to ask for higher wages.
Senior analysts said the increase in wages had been driven in part by the reduction in people coming from the EU to the UK to work.
They added that this was a situation that was unlikely to change as Britain continued to get used to being outside the EU.
Furthermore, economists said that despite the Brexit benefit, the vote had become a taboo.
Speaking to the Telegraph, the head of global strategy at French bank Natixis said: “We have decent labour demand but when you look at the supply, it has been cut massively due to Brexit.
“It creates an imbalance that continues to fuel wage growth and this situation is here to stay.”
The news comes after figures released last week showed wages were growing at a record pace of 7.7 percent.
In the build-up to the vote, Leave campaigners argued that leaving the EU would allow the British public to be paid more.
A letter signed by the likes of Boris Johnson and Michael Gove in May 2016 said: “Wages will be higher for working people outside the EU… because pay will no longer be undercut by uncontrolled migration.”
Economist Marion Amiot agreed, she said: “It’s much harder to get people from Europe so UK based-employees have better bargaining power and it means they can get higher wages.
“Obviously, we have seen immigration is still quite high on a net basis but it’s not the same immigrants, so the skill set they bring is a bit different from before.”
Senior economist at Indeed Jack Kennedy added: “Obviously, we have seen immigration is still quite high on a net basis but it’s not the same immigrants, so the skill set they bring is a bit different from before.”
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However, despite the Brexit win, there is a growing argument that wage increases are being wiped out by the skyrocketing cost of living.
The situation has gotten so bad that one charity which helps people with the cost of living has had to pause new referrals because of an “unprecedented need” for their services.
A spokesperson for the Bryston Charitable Group told the BBC: “To ensure that we are able to meet the needs of the remaining target 10,000 households over the harshest winter months, we have decided to temporarily pause new referrals once this phase closes for applications on Tuesday 21st November.”
