The latest report published by the EY Item Club, the economic forecasting group, challenges medium-term outlook presented by the BOE Governor Mark Carney last week, Bloomberg reports.
EY sees “negligible” real wage gains with nominal improvements of less than 3 percent right through 2020. In contrast, BOE sees a pickup from later this year, with wages growing close to 4 percent in 2019.
Key Points via Bloomberg:
EY blames its gloomier outlook on a slowing economy and lower demand for workers. That will cause the first annual drop in the number of people being hired since the financial crisis, stagnating real pay growth and greater joblessness