UK labour costs were forecast to increase following the Brexit Referendum – on falling EU migrant labour and a weaker GBP. UK employment is now at record highs.
We reviewed the Office of National Statistics labour costs data and assessed the change in costs per hour in the last two quarters and over the last 12 months – all split into your company sector.
This produced a varied picture of UK labour costs at the industry sector level:
5 sectors are recording annual labour cost increases that are above current CPI inflation (2.90%)
A further 11 sectors are paying higher labour costs (per hour) than 12 months prior.
BUT – the average for the UK “Whole Economy” is an annual decline in the labour cost index of -0.80%
15 industrial sectors are experiencing annual wage deflation
The Construction sector experienced a -5.70% fall in labour costs over the last 12 months.
How are your own labour £ costs compared to your sector average?
And what is occurring within your major suppliers and customers that will affect your own business chain?