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Moneyweek: Wages *are* Rising

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Moneyweek

However these net pay numbers and imbalances aren’t the only ones the authorities should be watching. George Osborne and Mervyn King might like to also note last week’s news out from Incomes Data Services showing that, while pay settlements overall aren’t something to worry about too much yet, there are some signs about that skilled workers in the private sector have no intention of being fobbed off with falling real wages for much longer.

According to this data, the median settlement in the manufacturing sector in the last three months of last year was around 2.9%. However the average disguises the fact that some 38% of the deals struck were for pay rises of 4% or more. With Retail Price Index inflation at 4.8%, this hardly counts as a breakout of a wage-price inflation spiral. But with commodity prices still rising and standards of living very obviously slipping it could turn into one.

Bottom line is that the 'recession' hasn't hit a lot of people very hard - ironically thanks to all the cash that was printed and dumped into the system. People don't really feel the sting of imminent job losses but they do feel the sting of a rapidly rising cost of living. Whoops - there's another scenario that didn't work out like TPTB planned.

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People don't really feel the sting of imminent job losses but they do feel the sting of a rapidly rising cost of living. Whoops - there's another scenario that didn't work out like TPTB planned.

Are you sure about that?. It still seems to me that they will do all they can to produce that 'soft landing' by moving the ground up to meet the overinflated house. A £200,000 house won't look as expensive when you're paying £1000 for the weekly shop. Of course that need wages to rise as well.....

IF they can do it to plan is a very different matter.

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Are you sure about that?. It still seems to me that they will do all they can to produce that 'soft landing' by moving the ground up to meet the overinflated house. A £200,000 house won't look as expensive when you're paying £1000 for the weekly shop. Of course that need wages to rise as well.....

IF they can do it to plan is a very different matter.

To me it looks to be part of the not-very-secret inflation plan.

If it were not planned, then the government would have forced the PS to cut wages as in Ireland and elsewhere, but that wouldn't suit their paymasters in the banks as it would cause deflation.

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The salariat are not seeing inflation busting pay deals. It is becoming harder to move across to another employer without taking a massive paycut. A few years back a professional could easily move into a new job paying the top end of the salary range of £45-55k. These jobs are now being advertised at £35-45k and my guess is the ones getting them will be getting the lower end of the wedge. Not good for house prices. Perhaps now is the time to include house prices in the CPI index!

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The salariat are not seeing inflation busting pay deals. It is becoming harder to move across to another employer without taking a massive paycut. A few years back a professional could easily move into a new job paying the top end of the salary range of £45-55k. These jobs are now being advertised at £35-45k and my guess is the ones getting them will be getting the lower end of the wedge. Not good for house prices. Perhaps now is the time to include house prices in the CPI index!

Doh!

I quoted your post in the other thread and you have only gone and deleted it :lol:

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The salariat are not seeing inflation busting pay deals. It is becoming harder to move across to another employer without taking a massive paycut. A few years back a professional could easily move into a new job paying the top end of the salary range of £45-55k. These jobs are now being advertised at £35-45k and my guess is the ones getting them will be getting the lower end of the wedge. Not good for house prices. Perhaps now is the time to include house prices in the CPI index!

Absolutely - from my own research (as posted in another thread), salaries in this bracket have dropped to lower levels than were on offer ten years ago.

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A few stories since the start of the year about unexpectedly large pay rises - but all in manufacturing, as far as I can see.

a cynic might think that this industry is the one the government is promoting as the future of the country.

it's working, the recovery is full on.

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In the local job centre there are two main types of jobs advertised - ones that 'meet minimum wage' and ones that pay £5.93 an hour :lol:

Pay and prices for goods and services that people NEED are going up, while everything else except big money mass media entertainment is struggling.

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Read an interesting point by Peter Schiff in a book of his today.

People think of inflation as rising prices, but that is just a symptom of inflation. Inflation actually refers to an expansion of the money supply, it does not need to be accompanied in the first instance by rising prices.

Basically we've got massive inflation, it's just taking time to feed through the system, but it's already starting to be obvious to even the most ardent deflationistas now.

Gilts rates are steadily rising, so we won't have to wait too long for higher IRs. Having said that, it's likely we'll see more QE to try and suppress gilt yields and therefore IRs. But seeing as QE is obviously inflationary, then that should just push up yields as it has in the US with the advent of QE2 - the opposite of what was supposed to happen.

The whole rotten edifice will collapse eventually despite the best efforts of the bad guys.

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In the local job centre there are two main types of jobs advertised - ones that 'meet minimum wage' and ones that pay £5.93 an hour :lol:

Pay and prices for goods and services that people NEED are going up, while everything else except big money mass media entertainment is struggling.

Once you have tried out one of these jobs you soon see how useless it is trying to make a living with a peasant salary. Its £35 a day, you can see why people do 14 hour part time then grab JSA work 2 days get paid 4 (and your free to barter things with all that free time). You know things are going to the dogs when after working all day on a 7 hour shift you have earned the equivalent of 35 vegetables.

Wife is no longer being asked by JSC to look at the job computers as they have no jobs requiring no experience.

Edited by pathfinder

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Are you sure about that?. It still seems to me that they will do all they can to produce that 'soft landing' by moving the ground up to meet the overinflated house. A £200,000 house won't look as expensive when you're paying £1000 for the weekly shop. Of course that need wages to rise as well.....

IF they can do it to plan is a very different matter.

Erm, I think this is how things used to be - food and fuel were costly, and housing was cheap (as a proportion of income). I've often wondered whether high house prices were simply a consequence of unnaturally cheaper everything else. If you chart oil prices against houses then I think that pretty much holds doesn't it?

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In the local job centre there are two main types of jobs advertised - ones that 'meet minimum wage' and ones that pay £5.93 an hour :lol:

Yes

But when I last went to the job centre there was one job paying £15 per hour . Camcorder operator .

When I looked at the details it stated . Must be prepared to work days, evenings , nights and weekends. Be wiling to work nude or semi nude and talk in a lurid manner on the phone . Yes the job centre was advertising jobs in the sex industry , it did not say male or female but did have a note saying that it might offend some sections of the community.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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