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Immigrants are keeping wages in UK down

Staff writer |
Wages will rise by just 2 percent in 2016, predicts the Chartered Institute of People Development (CIPD) and added that the Bank of England and Office for Budget Responsibility's forecast of a 3.5 percent pay increase is "too optimistic".

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The trade body predicts the number of jobs in Britain will grow by as much as 500,000. But thanks to growing numbers of workers migrating to Britain there is no shortage of skills, which is helping to keep a lid on wage inflation, said the CIPD.

The influx of foreign workers means that skills shortages are unlikely to pose a problem for most employers, who are reportedly confident about 2016 recruitment.

Mark Beatson, chief economist for the CIPD, said: "Shortages of skilled labour are not having any noticeable effect on economic growth, except for a few very specific sectors, such as construction.

"This is because our research shows that most employers remain confident about recruitment going into 2016 and most say they have a choice of suitable candidates for most positions.

"With record levels of net migration into the UK increasing the supply of labour, it doesn’t look like we’re going to see a skills crunch any time soon."


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