The economy has suffered many setbacks in the last 14 years, too many of which have been self-inflicted - Mark Casci

In a decade that has brought us so much turmoil, so much upheaval and so much uncertainty there has been one ever present constant that has never left our sides.

In a decade that has brought us so much turmoil, so much upheaval and so much uncertainty there has been one ever present constant that has never left our sides.

Real wages have not caught up to the levels seen prior to the 2008 financial crash.

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For many sectors, there has been no meaningful pay increase throughout the entirety of this period.

The economy has suffered setbacks.The economy has suffered setbacks.
The economy has suffered setbacks.

Nearly a decade and a half of austerity have taken its toll on the economy. Growth has been weak or nonexistent since the crash.

And this of course has had an impact on society.

This epoch of belt tightening was then followed with the impact of Brexit, the subsequent botched trade deal and the nuclear bomb of the pandemic.

Just when we began to take our masks off and look forward to a period of normality, inflation began to run riot.

Wages have not risen meaningfully.Wages have not risen meaningfully.
Wages have not risen meaningfully.
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Brought about by the impact of the barbarous war waged upon Ukraine by Vladimir Putin’s Russia, the rise in the price of oil and gas, higher interest rates and shortened supply chains across the economy we now face the highest cost of living prices in 40 years.

And the worst is yet to come with inflation set to top 10 per cent by the year’s end, the Bank of England stating it believes Britain is already in a recession and further increases in the cost of energy anticipated by the Autumn.

The impact on wages is now really coming home to roost.

In recent months virtually all firms, from the village tea room to the city-based tech giants have found themselves in a war for talent.

Staff shortages have caused serious problems since the pandemic blew a hole in the worldwide economy.

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For months now recruitment agencies and business leaders have spoken to me at length, both on the record and off, about how much of a seller’s market it has become when it comes to recruiting and retaining the best talent.

This has finally seen wages begin to tick up, with the latest figures from the CIPD showing that the private sector has seen record high pay rise expectations of circa 40 per cent.

However, bosses at the CIPD, which represents the HR and people development sector now say the tide may be turning.

In its latest report it shows evidence that the Labour market in Yorkshire is on the verge of reaching its peak.

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With recruitment bosses counselling restraint over pay awards.

Firms have, for months, been busting a gut to both attract and, in particular, to retain staff (some 40 per cent of employers in the region are expecting to recruit in the next three months).

But now it seems the party is slowly starting to peter out.

In response the CIPD is warning that pay increases cannot be sustained over the long-term so employers should look at other ways of supporting financial wellbeing in the cost-of-living crisis, such as enhancing their overall benefits package.

These latter recommendations should be given credibility, particularly when it comes to younger team members.

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Ask any CEO and they will tell you that entry level graduates are far less likely to ask at interview stage about remuneration packages or profit forecasts.

Brought up in an era which has seen the planet degraded at human hands, mental and physical health decline and pernicious nationalism shrink the UK’s standing on the worldwide stage, they want to know what prospective employers are doing to better the world.

This will help desperate firms with their cost bases but only at entry level. For other parts of the workforce, the lack of a decent pay rise in more than a decade has seen them reach desperation stage, with strike action either hitting or looming in multiple sectors.

What is clear is that the mistakes of the past 14 years cannot continue. A fair wage is, of course, a start.

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But with repeated broken promises on everything from levelling up to Brexit, a new path is required to help drag us out of the morass.

I firmly believe that the solutions to the country’s ills lie in what the north has to offer.

Whoever the next Government is led by must understand this or cause yet more damage to a fragile nation.

Until someone gets this, unfair wages will reflect an unfair society.