Record employment but summer slowdown in pay recovery

Pick-up in productivity should help to support wage growth in coming months The UK’s headline employment rate hit another historic high, but real wage growth slowed over the summer. A pick-up in productivity and further falls in unemployment should support upward pay pressure in the coming months, the Resolution Foundation said today (Wednesday) in response … Continued

Resolution Foundation warns that pushing ahead with tweaked proposals on tax credits would be expensive and still leave most families worse off

New research shows the Treasury could reverse the most damaging tax credit cuts and still meet key fiscal objectives The government has several options for funding a reversal of its planned tax credit cuts, but pushing ahead with tweaked proposals would be expensive, leave millions of families worse off,  and produce perverse work incentives, according … Continued

Downturn has been felt very differently across generations

Trend risks being reinforced over the parliament by welfare changes Commenting on new ONS figures published today (Wednesday) that ‘nowcast’ household incomes up to the year 2014/15, Adam Corlett, Economic Analyst at the Resolution Foundation said: “Today’s ONS figures highlight the depth of the recent living standards squeeze, and the welcome recovery in the last year, … Continued

Employment at record high but return to pre-crash pay packets still a long way off

Finance sector closest to returning to pre-crash earnings, construction furthest away A welcome return to falling unemployment is creating upward pressure on wages but, after an unprecedented six-year squeeze, average earnings remain a long way off their pre-crash peak, the Resolution Foundation said today (Wednesday) in response to the latest labour market statistics. The employment … Continued

Private sector earnings growing at fastest rate in 15 years

  Low inflation and welcome shift in types of job roles being created is driving mini pay surge Private sector earnings are growing at their fastest rate since the early 2000s, but maintaining the  pay surge into 2016 will prove challenging once inflation starts to rise, according to the Resolution Foundation’s new earnings outlook published … Continued

Pay growth and employment rate both reach post-crisis highs

But the restoration of pre-crisis pay level remains several years off Earning growth reached a post-crisis high in the three months to July, marking a fourth consecutive month of ‘catch up’ growth. But the restoration of pre-crisis pay levels remains several years off, the Resolution Foundation said today (Wednesday) in response to the latest labour … Continued

Earnings set to continue playing catch-up in coming months

RF warns pace of recovery will be hard to maintain once inflation starts to rise from its historic low Real earnings are set to continue playing ‘catch-up’ in the short-term, with pay expected to maintain its recent growth rate, but there are doubts about how long this can continue, according to the Resolution Foundation’s latest … Continued

Torsten Bell appointed as new Director of the Resolution Foundation

Today (Friday) the Resolution Foundation announced that Torsten Bell has been appointed as its new Director. He will work alongside the Resolution Foundations recently appointed Executive Chair, David Willetts. Previously, Torsten worked as a Treasury civil servant before becoming special advisor to Alistair Darling during the financial crisis and then Director of Policy for the … Continued

Continued presence of zero hours contracts suggests they might be a permanent feature of labour market

  Policy action needed to prevent them becoming standard form of employment in low-paid sectors The continued use of zero-hours contracts (ZHCs) over the recent period of strong employment recovery suggests they may remain a permanent feature of the labour market rather than a temporary reaction to the downturn, the Resolution Foundation said today (Wednesday) in … Continued

Pay recovery looks set to continue throughout 2015

  Fresh policy action needed to reignite Britain’s stalled employment growth Britain’s pay recovery looks set to continue throughout 2015 but employment growth appears to have stalled, the Resolution Foundation said today (Wednesday) in response to the latest labour market figures. Real wages (excluding bonuses) continued to grow by 2.8% in the year to June … Continued

Private sector continuing to lead pay rebound

First fall in employment for two years suggests jobs surge could be losing momentum The pace of Britain’s real pay recovery increased slightly in May, though the first fall in employment for two years appears to have put jobs growth on pause, the independent think-tank the Resolution Foundation said today (Wednesday) in response to the … Continued

Over 700,000 care workers set to benefit from new ‘National Living Wage’ – but extra funding essential or services will suffer

The new National Living Wage (NLW) will deliver a welcome pay rise to between 700,000 and one million frontline care workers by 2020, according to new analysis published today (Sunday) by the independent think-tank the Resolution Foundation. The Foundation – which earlier this year called for and costed a plan to make social care a … Continued

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