Wages are going up in America, especially for low wage workers. No one knows why exactly. It could be unemployment benefits, inflation, or a higher reservation wage. The same thing is happening in the UK. Wages are up more than 8% compared to last year in the United Kingdom too, and have been rising all spring, even before the economy fully reopened. UK is not offering the same benefits, but it is also experiencing global shortages, mild(er) inflation, and workers who may be reluctant to return to their jobs. It does seem some of the wage increase is a global phenomena. This fall will reveal if it lasts there too.
Source: UK Office for National Statistics
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
Interested in real economic insights? Want to stay ahead of the competition? Every Wednesday, e21 delivers a short email that includes e21 exclusive commentary and the latest market news and updates from around the Web. Sign up for the e21 Weekly eBrief.
Photo by AmArtPhotography/iStock