Growth in base pay rose to its highest figure since 1992 in November, and we think that it will continue to hold strong through to this year. According to today’s preliminary estimate, labour cash earnings rose by 3% in November. That was broadly in line with our forecast and was much higher than the 2.2% increase in October. Regular earnings growth rose anew from 2.5% to 2.7%. As a result, it contributed a strong 2.3%-pts to overall labour cash earnings. However, it’s worth noting that the preliminary estimate for regular earnings growth has been revised down in 9 out of 10 months so far this year, with the last revision in October being 0.1%-pts. We suspect it will also be revised down in November as well.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services