According to job search platform Indeed, wage growth in the United Kingdom has outpaced the United States and the eurozone. Advertised salaries in the UK recorded a growth rate of 6.8%

in May, surpassing the figures seen in 2022. In contrast, salary growth in the United States slowed to 5.3%, while in the eurozone, it edged down to 4.7%.

Among the major eurozone countries, Germany experienced the highest salary growth at 6.2%, while Italy had the weakest growth at just 1.6%. Spain and the Netherlands maintained an upward trend in pay growth.

The increase in advertised salaries in the UK was particularly notable in nursing and low-paid roles such as retail, hospitality, and cleaning. This can be attributed to the 9.7% rise in the minimum wage in April and a government pay agreement benefiting nurses by approximately 5%, according to Indeed.

However, it is important to note that wage growth in the UK still lags behind consumer price inflation, which stood at 8.7% in April and remained in double digits for seven consecutive months prior to that.

Although the number of job vacancies relative to the number of unemployed individuals declined in the UK, similar to trends in the US and the eurozone, this could potentially exert downward pressure on wages in the future.

Despite the positive wage growth, other labor market indicators suggest a softening. The Recruitment and Employment Confederation reported the slowest growth in starting salaries since April 2021. Official data from the first quarter of 2023 showed annual wage growth, excluding bonuses, for all employees at 6.7%. Photo by PPP, Wikimedia commons.