The Resolution Foundation think thank conducted an analysis of wage growth and found some disappointing realities.

Think tank is estimating that real-time pay is more likely to increase by a mere one percent by this time next year, due primarily to Britain’s productivity problem and history of inflation.  Predictions made last year optimistically estimated an average of a two to two and a half percent increase year over year.

A human resource expert affiliated with the Resolution Foundation revealed there are actually “signs of flattening-in measure of slack, and the expectation remains that inflation will soon start rising.” 

The analysis argues that if productivity growth didn’t increase at all and remained the same while inflation increases to what the Bank of England wants, by the end of 2016 real wage will only increase by an approximate percentage point.

While the Resolution Foundation certainly presents a valid argument, not all human resource experts believe this to be truth.  One HR professional recently expressed how UK employees should really feel optimistic.  Although some sectors are seeing a slowdown in wage growth, the economy is still technically playing catch up after the many post-recession years. 

There is not one economy that won’t feel the ups and downs of the marketplace, and not all sectors are created equal.  Some HR experts suggest that wage growth cannot even be measured through an overarching number accounting for all sectors, but needs to be evaluated sector by sector.