UK wages may be rising faster than the official data shows according to the Resolution Foundation, a think tank. They say the government data doesn’t accurately account for the 4.5m self employed workers in the UK.
As a result, wages fell faster in the downturn than stated but are also rebounding faster.
“Our analysis suggests that at different times we may have both overstated and understated, often significantly, how much workers have been earning,” said Laura Gardiner, senior analyst at the Resolution Foundation.
“It should be possible to construct a more comprehensive and timely way of measuring wages across the workforce and we hope to provoke a much-needed debate about how best to do this.”
This story has been passed around markets to some extent but I doubt the Bank of England will change its thinking or the path of interest rates based on it.
