World Economy

Wages in UK to Fall

Wages in  UK to Fall Wages in  UK to Fall

Brexit will hit the earnings of lower-paid UK workers even if the supply of foreign labor is reduced by tough cuts to inward migration, according to the Resolution Foundation, Bloomberg reported. Analyzing the impact of migration over the past decade, the London-based group said while it had no overall impact on British wages, certain jobs—including cleaning, sales and security—saw drag on pay. “Leave” campaigners tapped into resentment in the buildup to the June referendum, arguing that low-paid workers would benefit if migration numbers were cut. Resolution estimates that the salaries of UK workers in the industries most affected by migration would rise between 0.2% and 0.6% by 2018 if the inflow was lowered to below a government aim of 100,000 immediately from the current level of 333,000 a year. But it said that any increase would be wiped out by a 2% drop in real incomes implied in Bank of England forecasts released this month, which showed weaker economic growth while the July inflation rose to its highest level in 20 months. The consumer price index came in at 0.6%.