Tuesday 15 December 2015

The 2016 earnings outlook: Will inflation or productivity prevail in Britain’s pay recovery?

The UK has experienced a welcome pay rebound this year, helped along by falling unemployment and historically low inflation.

But can the pay recovery be sustained into next year? Will rising inflation erode real wage growth, or will stronger productivity gains push nominal pay rises higher still? Which of these will ultimately determine the strength of earnings in 2016?

At an event at its new offices in St James Park, the Resolution Foundation presented findings from its Quarterly Earnings Outlook. A panel of leading labour market economists then debated prospects for pay in 2016, followed by a Q&A.