Heather Isch’s Post

For those interested in attending, we invite you to join the presentation and discussion of our study’s findings with Fikret Bilenkisi and Mehmet Akif Yardımcı

LINK seminar with the DWP on 19/11/24 12-1pm. An empirical analysis on minimum wage & inflation during the post-COVID era, will be discussed by colleagues from the Universities of Huddersfield, York & Edinburgh. Click here for abstract & how to join bit.ly/4elWZ6p #minimumwage #inflation #research

Answered: Four critical questions on the proposed changes in PF wage ceiling https://lnkd.in/gTnEZfEY Download Economic Times App to stay updated with Business News - https://lnkd.in/geZXhCXX

Keir Starmer thinks he has the General Election in the bag. This chart should give him nightmares. Real wage growth (nominal wage growth - inflation) going into the General Election is crucial: 2001: Real wage growth was positive at +3.34%. The incumbent PM Tony Blair's government won 2005: Real wage growth was positive at +2.4%. The incumbent PM Tony Blair's government won 2010: Real wage growth was negative at -1.83%. The incumbent PM Gordon Brown's government lost, and David Cameron's Conservatives won 2015: Real wage growth was positive at +2.67%. The incumbent PM David Cameron's government gained seats, shifting from a Conservative-Liberal coalition to a Conservative majority government 2017: Real wage growth was negative at -0.91%. The incumbent PM Theresa May's government lost its majority in the Commons 2019: Real wage growth was positive at +2.1%. The incumbent PM Boris Johnson's government secured a thumping majority So, where are we today? Real wage growth turned positive in the second half of last year and is currently running at +3.7%. UKAWXTOM: UK AWE Regular Pay Whole Economy 3M Avg YoY SA UKRPCJYR: UK CPI EU Harmonized YoY NSA #GeneralElection #UK #KeirStarmer #RishiSunak #Labour #Conservatives #WageGrowth #Inflation #economy

Young workers on junior rates often take home just 70% of what their older colleagues are making, even though they are working side by side doing the same job. Young workers don’t get youth discounts on rent or bills, so why are their wages discounted? Sign our petition and support the campaign for all workers over 18 to receive adult wages. Link in first comment below 🔗👇

Federal minimum wage’s real value continues to decline. The last increase by US Congress went into effect in July 2009. Both U.S. House of Representatives representatives and United States Senate senators earn more than 11.5 times a person working full-time 40 hour weeks for 52 weeks a year. Congress’ annual salary places them in the top 5% of income earners in the U.S. While the Bureau of Labor Statistics placed national unemployment at 3.9% in February, the true rate of unemployment — or those functionally unemployed — reached 24.9%, according to the Ludwig Institute for Shared Economic Prosperity . In other words, nearly 1 in 4, rather than 1 in 25. https://lnkd.in/gxjbuCiw. https://www.lisep.org/tru An excellent visualization by Marcus Lu, Visual Capitalist. https://lnkd.in/gCd_pDcY #income #wages #minimumwage #unitedstates #economy

For the first time in 40 years, I have no political affiliation and weigh every argument from all parties. However, I can’t let this budget from the new government pass without sharing my thoughts here. Some measures announced by Rachel Reeves are welcome—like the aim to improve our public services, especially the NHS, which I’ve championed many times. But here’s the rub: basic economics tells us that to make public departments thrive, we need either to raise taxes or reduce spending. Labour promised to avoid raising taxes on “working people”—a term they’ve struggled to define—yet have increased the tax burden in ways that will hit charities, care homes, small businesses, GP surgeries, and more. Small and medium-sized businesses are the beating heart of our economy, and yet now they’re under greater pressure than ever. My thoughts went out to Toby Dicker as he described the impact on the hairdressing industry. He spoke about lost apprenticeships, talent, and opportunities for investment. His passion for creating a future resonated deeply—many industries have a Toby, who see the broader picture and feel the weight of responsibility. Similarly, the farming community is now under more pressure. Industry leaders voice concerns about the future of farming, and I worry about the lasting effects. Future-proofing is essential, yet we seem intent on making the sector less attractive and vulnerable to “land grabs” to meet new IHT demands. This is not about wealth or “hammering the rich.” The reality is that these policies impact already-struggling communities as businesses and the third-sector are forced to cut back. The projected growth over this parliament’s term isn’t what we’d hoped for—take a look at the OBR reports for a clearer picture. And let’s not overlook the mental health toll either. Watching government ministers, including the chancellor—a former Bank of England economic advisor (?)—showcase what seems like economic naivety only adds to the concern. Many will have differing opinions, but the question isn’t just what one party would do differently or the impact on one group here or there. Our politicians need more real-life experience. On Labour’s front bench, not one has faced the difficult business realities or felt the consequences of tough government decisions on their enterprise. I have great respect for Andrew Neil as a broadcaster and critical voice—his article here is worth a read. https://lnkd.in/eHxu4NYq In times like these, we need leaders with a deep understanding of the industries, communities, and people affected by their policies. Real change demands real-world experience, thoughtful planning, and the courage to prioritise long-term growth over short-term gains. Let’s hope they learn from this, listen and demonstrate leadership that truly values the fabric of our economy and society. #Economics #PublicServices #budget #SmallBusiness Rt Hon Rachel Reeves Keir Starmer Rishi Sunak John Ashcroft

Embrace the upward shift in the average household living wage, now at $17.24. Take charge of your financial stability—unlock your true earning potential. Discover where you stand with our free wage analysis tool: https://bit.ly/WageWorth

A very interesting but substantial opinion piece from Bloomberg on Starmer’s government and its apparently vindictive approach to policy and delight in paying off its union support. They are indulging their core support from deeply vested interests while not seeking improved productivity and modern work practices. This is bold when the landslide vote result obscures the meagre 34% share of vote. “A deeper reason is that needlessly antagonizing Middle England will do nothing to address the country’s underlying problem, its dismal growth rate. Labour’s central promise was to improve productivity. Yet it failed to use pay rises as a way of pushing through productivity improvements — and now risks setting off a competitive round of wage inflation. It was all quid and no quo. Giving productivity-free pay rises to strike-prone workers while claiming that there’s a financial crisis is not a good way of building sustainable support for your policies”.

Spotlight on stewardship: advocating for living wages - part 2 In the UK, the minimum wage is set by the government and known as the ‘national living wage’. The ‘real living wage’ is set by the UK Living Wage Foundation. This is the definition NOW: Pensions uses when we’re measuring a company’s living wage efforts. Many workers across global supply chains aren’t given this essential standard, leading to significant wage gaps that keep people in poverty. Closing the wage gap has profound implications and positive social impacts: 🌟 Alleviates poverty: paying a living wage can help lift workers out of poverty. ❌ Reduces child labour: adequate wages reduce the financial pressures that lead to child labour. 📚 Positive impact to children’s futures: higher wages allow families to invest in their children's education and wellbeing, leading to long-term benefits for society. Learn more in our stewardship policy: https://ow.ly/56gR50Tgk8U #stewardshippolicy #nowpensions #livingwage #spotlightonstewardship