Independent Leyton Orient Forum

StillSpike wrote: ↑Wed Sep 15, 2021 9:02 am Broadening this out to "wage inflation".

I was listening to the radio yesterday and there was a discussion around labour shortages in various industries - care, hospitality etc. I hadn't caught the name of the guest but they were from one of the unions, and they were arguing the rather obvious point that low pay was a big factor in the problem.

The presenter - doing the usual "Devil's Avocado" thing, then came back with "but wages have gone up and up, look, there's "wage inflation" running at 8%".

Now, my question is - how has anyone calculated "wage inflation" at 8%? Who's getting all the pay rises? (that's 2 questions, I guess)

The public sector still seem to be in a pay freeze and everyone on NMW have only seen a 2% increase on 2020. Now those 2 areas alone are a massive chunk of the workforce, so where are all these huge increases? I know HGV drives have just seen a big jump, but as a % of the total labour pool that's a drop in the ocean, surely. Are there other large employers splashing double digit wage increases around - or is this "wage inflation" measure being gamed in some way?

Ronnie Hotdogs wrote: ↑Wed Sep 15, 2021 9:36 am Is this the uplit sunlands we were promised?

faldO wrote: ↑Wed Sep 15, 2021 7:27 am Love the way the BBC are presenting it as the biggest increase "since records began in 1997".

As if nobody knows what is was during the 1970s and 1980s.

You can argue over the different indices (CPI, RPI, etc) but anything for a sensational headline.

Dunners wrote: ↑Wed Sep 15, 2021 9:28 am

StillSpike wrote: ↑Wed Sep 15, 2021 9:02 am Broadening this out to "wage inflation".

I was listening to the radio yesterday and there was a discussion around labour shortages in various industries - care, hospitality etc. I hadn't caught the name of the guest but they were from one of the unions, and they were arguing the rather obvious point that low pay was a big factor in the problem.

The presenter - doing the usual "Devil's Avocado" thing, then came back with "but wages have gone up and up, look, there's "wage inflation" running at 8%".

Now, my question is - how has anyone calculated "wage inflation" at 8%? Who's getting all the pay rises? (that's 2 questions, I guess)

The public sector still seem to be in a pay freeze and everyone on NMW have only seen a 2% increase on 2020. Now those 2 areas alone are a massive chunk of the workforce, so where are all these huge increases? I know HGV drives have just seen a big jump, but as a % of the total labour pool that's a drop in the ocean, surely. Are there other large employers splashing double digit wage increases around - or is this "wage inflation" measure being gamed in some way?

I've read a few reports of some workers using the current shortage to negotiate better terms (i.e. haulage drivers), but nothing that would convince me that this is filtering down throughout society and is systematic (yet).

From my own experience, however, we've noticed a significant drop in applicants for vacancies. One particular role in pre-pandemic/Brexit times would have attracted something in the region of 25 to 50 applicants. As the recruiting lead, I therefore had sufficient numbers to identify high-quality candidates at industry-benchmarked salaries.

Last week I closed an advert for a vacancy for that same role, and had attracted just 7 applications. All are way below the standard and quality I require, so I have not made an offer and will now be commissioning some research to understand what is happening and how we need to react. But the thing is, the vast majority of our applicants have always been UK Nationals.

Dunners wrote: ↑Wed Sep 15, 2021 9:28 am

StillSpike wrote: ↑Wed Sep 15, 2021 9:02 am Broadening this out to "wage inflation".

I was listening to the radio yesterday and there was a discussion around labour shortages in various industries - care, hospitality etc. I hadn't caught the name of the guest but they were from one of the unions, and they were arguing the rather obvious point that low pay was a big factor in the problem.

The presenter - doing the usual "Devil's Avocado" thing, then came back with "but wages have gone up and up, look, there's "wage inflation" running at 8%".

Now, my question is - how has anyone calculated "wage inflation" at 8%? Who's getting all the pay rises? (that's 2 questions, I guess)

The public sector still seem to be in a pay freeze and everyone on NMW have only seen a 2% increase on 2020. Now those 2 areas alone are a massive chunk of the workforce, so where are all these huge increases? I know HGV drives have just seen a big jump, but as a % of the total labour pool that's a drop in the ocean, surely. Are there other large employers splashing double digit wage increases around - or is this "wage inflation" measure being gamed in some way?

I've read a few reports of some workers using the current shortage to negotiate better terms (i.e. haulage drivers), but nothing that would convince me that this is filtering down throughout society and is systematic (yet).

From my own experience, however, we've noticed a significant drop in applicants for vacancies. One particular role in pre-pandemic/Brexit times would have attracted something in the region of 25 to 50 applicants. As the recruiting lead, I therefore had sufficient numbers to identify high-quality candidates at industry-benchmarked salaries.

Last week I closed an advert for a vacancy for that same role, and had attracted just 7 applications. All are way below the standard and quality I require, so I have not made an offer and will now be commissioning some research to understand what is happening and how we need to react. But the thing is, the vast majority of our applicants have always been UK Nationals.

Max B Gold wrote: ↑Wed Sep 15, 2021 1:52 pm People can grow into jobs if they are properly supported.

tuffers#1 wrote: ↑Wed Sep 15, 2021 12:47 pm

faldO wrote: ↑Wed Sep 15, 2021 7:27 am Love the way the BBC are presenting it as the biggest increase "since records began in 1997".

As if nobody knows what is was during the 1970s and 1980s.

You can argue over the different indices (CPI, RPI, etc) but anything for a sensational headline.

But it IS the BIGGEST RISE since RECORDS BEGAN in 1997 .

faldO wrote: ↑Wed Sep 15, 2021 3:08 pm

tuffers#1 wrote: ↑Wed Sep 15, 2021 12:47 pm

faldO wrote: ↑Wed Sep 15, 2021 7:27 am Love the way the BBC are presenting it as the biggest increase "since records began in 1997".

As if nobody knows what is was during the 1970s and 1980s.

You can argue over the different indices (CPI, RPI, etc) but anything for a sensational headline.

But it IS the BIGGEST RISE since RECORDS BEGAN in 1997 .

BBC earlier today: The UK inflation rate hit 3.2% in the year to August, the biggest increase since records began in 1997, as the economy continued to reopen.

BBC now: Price rises have seen the biggest jump since records began in 1997 as the economy continued to reopen.

Yes, the CPI has hit its highest increase since records began in 1997,

Ronnie Hotdogs wrote: ↑Wed Sep 15, 2021 3:13 pm Good that you’re focusing on the important aspect in all of this.

faldO wrote: ↑Wed Sep 15, 2021 3:30 pm

Ronnie Hotdogs wrote: ↑Wed Sep 15, 2021 3:13 pm Good that you’re focusing on the important aspect in all of this.

Thanks - it's important to point out the difference between RPI and CPI on a thread about inflation.