UK wages rocket as cheap foreign labour exits labour market

No, really? Yes, really, via Reuters:

Major British employers gave average pay rises of 2.6% to staff in the three months to July, the highest pace of increase in more than 10 years, data from industry consultants XpertHR showed on Thursday.

Annual pay settlements in Britain began to rise roughly a year ago as the lowest unemployment rate since the mid-1970s put pressure on employers to retain staff, but deals had been stuck at around 2.5% in recent months.

And more:

In sharp contrast to the broader economic slowdown that has taken Britain to the brink of recession, the Office for National Statistics said annual average pay – excluding bonuses – rose by 3.9% in the three months to June, the highest rate since June 2008.

The ONS said about 115,000 more people found a job between April and June, when Theresa May extended the Brexit deadline until October, pushing up the number of people in work to a record of just over 32.8 million.

Unemployment rose slightly from 3.8% to 3.9%, but remains at its lowest level since the mid-1970s…

This comes alongside the GBP crashing, driving huge competitiveness gains, de-bottlenecking Britain, lifting living standards, and even driving gains in productivity:

And the tonic has been Brexit immigration cuts:

The rise in worker’s share has clearly angered UK employers, who have stepped-up their lobbying to slash the salary threshold for immigrant workers to £21,000 from £30,000 currently:

Business groups have slammed proposals to raise the salary threshold for immigrant workers to £36,700 after Brexit, warning the move would harm British companies.

Home secretary Priti Patel has been urged to increase the proposed salary minimum of £30,000 for all new foreign workers in a bid to protect lower skilled, UK-born employees.

But business leaders warned that the plans would stifle growth for firms in London and across the UK.

Edwin Morgan, interim director general at the Institute of Directors, said: “With unemployment at record lows, skills gaps are already holding businesses back.

“The threshold is repeatedly raised by employers as a concern, and raising the bar even higher would put another spanner in the works for firms looking to grow.”

Steven Reilly-Hii, spokesman for London Chamber of Commerce and Industry, said that even the £30,000 threshold would limit companies’ access to talent.

“Immigration system reform is inevitable as we leave the EU, but it’s imperative that the new system has a strong economic basis that recognises the need for continued immigration access to skills at all levels,” he said. “The proposed threshold should be coming down, not going up.”

The proposals came in a new report from right-wing think tank The Centre for Social Justice (CSJ), which was co-founded by Iain Duncan Smith.

The CSJ also warned that a significant increase in low-skilled immigration had pushed down wages for UK-born workers on lower incomes.

Income thresholds currently only apply to migrants from outside the EU, but are set to be extended to EU workers after Brexit…

The government has been expected to reduce the minimum salary level, but new home secretary Patel has come under pressure from parts of the Tory party to take a tougher stance.

Mayor Sadiq Khan has also criticised government plans for a salary threshold, saying they would damage London’s economy, as well as its openness and diversity.

A spokesperson for Khan said: “Far from raising the minimum salary threshold, the Mayor believes the government should instead be lowering it to £21,000 and welcoming the skilled migration that London, and the rest of the country, will desperately need post-Brexit.”

The motive behind the UK employers special pleadings is obvious: to lower wages and boost their profits. It has nothing to do with the national interest.

Except in very limited circumstances, there is no such thing as a shortage of labour. There is only a “shortage” of labour at the price/ wages firms are generally willing to pay.

The very purpose of migrant workers is to suppress wage growth by allowing employers to recruit from a global pool of labour to compete with local workers. If UK employers want to attract workers there is a simple solution: raise wages. This is how the “market” is supposed to function when their are shortages.

Allowing the mass importation of foreign workers will circumvent the ordinary functioning of the labour market by enabling employers to pluck cheap foreign workers in lieu of raising wages. It will also discourage employers from training locals in favour of hiring ready-made workers from overseas. This is deleterious for both workers and the broader economy.

You want Aussie wages to rise? The answer is obvious.

Houses and Holes
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    • The 2.561 million third world unskilled migrants guestworkers on pretext TR/SCV visa alibis..

      In addition to the 1.9 million third world unskilled and highly dependent migrant PR still on foreign national passports allowed in over the last decade.
      And we have another 440,000 – mostly Chinese, North & south East Asian & Indian ‘tourist visitors’ entering on long stay & repeat stay visas to live & work illegally.

      -> The 2.561 million TR / SCV are the bulk of it.

      Lower all Australian wages by 7.3%
      Lower our gdp per Capita by 6.8%

      Just the 712,000 TR as ‘foreign students’ & ‘partners’
      (615,000 as a primary visa holder, 63,000 as so called ‘partners’ and 34,000 DFAT & special scholarship visa holders) have a ratio of 534,000 or 75% working illegally. (Syd Uni & UTS Report).

      Just this one sub category of TR alone create over 534,000 unemployed Australians – costing the Australian taxpayer some $9.8 billion.

      Yet the entire foreign student fees paid are only $8.2 billion (Deloitte (and from money earned here illegally)
      -> How is that an ‘export’ ?
      -> How is that even ‘incremental GDP’?

      Sure it’s ‘economic activity’
      712,000 foreign students at half the Australians average GDP per Capita..
      That create over half a million Australian citizen unemployed & destroys wages for all other Australians.

      It is a massively economically, socially destructive ‘activity’.
      Not an export.
      And it’s not even incremental GDP.

      Concentration & correlation.

      Of the 2.561 million migrant TR / SCV – 90% or 2.3 million are concentrated in just Sydney & Melbourne.

      1.3 million non citizen unskilled third world migrant guestworkers.
      1 in 4 people.
      1.05 million third world migrant guestworkers.
      1 in 5 people.

      Pushing up housing costs – low end & modest Australian established housing devoured by foreign criminal syndicates – to wash their dirty money via Migrant PR (to avoid the FIRB).
      To convert modest established Australian housing into migrant guestworker only cash in hand illegal bunk share.

      Over $80 billion of foreign dirty money has been laundered in by the foreign criminal syndicates to buy over 500,000 ex Australian dwellings to house the 2.561 million migrant guestworker & 440,000 migrant tourist visitors working & living illegally
      (3 million TR/SCV/TV illegals / 6 occupants minimum = at least 500,000 dwellings)

      There’s your ‘property bubble’
      Perfectly ‘correlated’.

      There’s your sky rocketing rental costs.
      Why let a small 2 bed old rundown poky unit bought for $550k in Burwoo to an Australian couple for $400 a week… 3% yield..
      when 8 or more Chinese or Indian ‘foreign students’ can be packed in at $150 a week each ($1,200 cash total or 11% Yield – and only $300 is declared & the other $900 taken as cash no tax).
      Plus the foreign PR proxy used to buy the property evade the FIRB in ‘washing’ the dirty criminal money, can also claim negative gearing’ as a kicker…

      That’s why Fuku Ato the Chinese PR who works in a shopping centre fixing phones has an ‘investment property rental property portfolio’ of 6 old little run down similar units in Burwoo, Strathwoo, Rhodes, Granville and Ashfield worth $3 million…

      Not his money but he hooks the $370,000 a year cash – pays back to the Chinese criminal syndicates and takes a cut, plus the negative gearing.

      The result?
      116,000 Australian permanent homeless.
      Evicted or ethnically cleansed out by the new foreign PR owner that bought their dwelling as a PR Proxy with the dirty money & then converted it to house the migrant guestworker influx.

      First the migrant guestworkers stole their jobs.
      Then they stole their housing.
      The Australians now pushed out onto the streets & gutters into the parks, sleeping in cars, our young people, our old people, our most vulnerable, now families, mothers with children.

      Another 340,000 Australians with no affordable housing.
      No increase in Newstart for them – it wouldn’t even cover the cost of renting a room in Sydney.
      It’s just criminal.

      And then we have our education system totally destroyed as it prostituted itself as a visa alibi.
      Another story in itself.

      Our trains & buses congested & filthy with the migrant guestworker influx. Same.

      Our power & dams stretched beyond capacity, but the migrant guestworkers ‘cash in hand no tax’ aren’t paying anything towards that either.

      Our taxpayer funded hospitals overloaded with sick & diseased third world TR & SCV migrant guestworkers who entered on fake health checks – who present to our hospital public emergency or rort the PR migrant Medicare cards.
      $150 in Sydney today buys a Chinese or Indian Tourist visitor’ or a TR/SCV – a matched PR identity Medicare card & now even an matched blood type for expensive surgery or specialist medical treatment.

      Australian ‘medical tourism’ by the Chinese & Indian old & sick coming in on tourist visas to rort our health care is our only tourist growth industry.

      And then they loot & stockpile the PBS drugs to resell back in China or India to fund it all.


      2.561 million migrant guestworkers.

      More migrant guestworkers than Gaddafi at his peak peak. (And his ones paid tax)

      Our migrant guestworkers work & live illegally, on pretext visas, to repay the agent procurer bribes & loans, to send back remittances, to try and snag a PR & cash back or the foreign agent procurer loan repaid as a sponsor for chain migration of even more third world detritus.

      The foreign run vice industry openly trafficking and advertised tens of thousands of end of life Chinese, North & south Asian vice workers.
      ‘Candy china student – just arive’,
      ‘Fifi – Korea visting – have fun avilible now’

      90% of the vice industry is foreign criminal run & openly trafficking in tens of thousands of third world sex workers.
      The TR / SCV used as money mules to transfer in & out the proceeds of crime, the hub of illegal work, foreign black market labour and visa scam rackets.
      They are all being ‘exploited’.
      No. The migrant guestworkers are all willing participants. None are ‘exploited’. Go visit their country of origin in India, China, Bangladesh, Pakistan, Taiwan, Korea, Malaysia, Thailand, the Middle East.
      It’s a long queue of slum dwellers, rurals, vice workers, petty criminals, lined up to get the agent procurer loan debt, pay the bribes, the false health checks, the fake papers, sham marriages for the ‘partners’ to then be willingly packaged up to enter Australia to live & work illegally.
      This ‘exploited excuse’ is for the appeals tribunal when they are caught – and that’s good for another 5 year stay on a ‘protection visa’.
      Until they are also gifted a PR for their deliberate visa breach & onshore criminal activity.

      Their sole purpose was to enter Australia to live & work illegally in visa breach, long before they arrived.
      … to repay that debt by working & living illegally, to send back the remittances, to get the PR & be a sponsor for the rest of the third world burden like them.


      The vast migrant guestworker slums now engulf all of Sydney & Melbourne.

      Sydney western suburbs alone – over 1 million migrant guestworker non Australians – non assimilated, lining up to working illegally in the vast foreign criminal run black economy.

      Go there. See for yourself.

      Third world filth, squalor, congestion, Indian, Chinese, South East Asian, Middle Eastern jihadi and African violent gang enclaves.

      Mumbai meets Guangzhou meets Cairo meets Mogadishu.

      Australia is a case study in a totally failed border and visa system – overwhelmed by third world criminal syndicates in a conveyor belt of trafficking third world unskilled migrants from their foreign slums into the now equivalent foreign enclave slums here.


      There is no ‘political’ option or even a choice to vote for in fixing all this.

      Both the major parties are equally corrupted by the foreign criminal lobbyists & vested interest in continuing and expanding the TR/SCV migrant guestworker trafficking.

      Australians need to demand an Australian Peoples Immigration Authority.
      An authority independent from any Government in power.
      An authority that sets the policy and has full control over the DHA in borders and visa system in both intake numbers, quality and visa enforcement.

      At least 1.4 million migrant guestworkers on a visa pretext who are living & working here illegally need to be rounded up & deported.

      Then our housing, jobs, wages, education, health services, transport & infrastructure and our overall standard of living can be restored.

  1. UK is also now classifying many “student” visas as work visas. They have also limited their number.

  2. This may be true, but they are also RACISTS for denying foreigners unlimited working rights on their soil, and onstead gioving the jobs to actual British people. Incredibly otherist.

  3. Cynic hat on:

    …but are UK house prices about to rocket up and away from these wage rises – as higher wages typically just result in MOAR debt – or have the UK got sufficient macroprudential protections in place?? Will landlords just put up rents??

    If there’s not sufficient protection and government redirection AWAY from such rentier behviour, then what’s the point really?

  4. Well blow me down with a feather..

    You mean to say that if you stop immigration and make it harder for people from lower paid countries to immigrate easily – wages actually start rising?

    Same thing would happen in Australia if you took out the 1.2 million international students and other visa holders working for cash and other slave wagery !

  5. The CSJ also warned that a significant increase in low-skilled immigration had pushed down wages for UK-born workers on lower incomes.

    So importing lots of low skilled immigrants smashes the incomes of native born low wage workers.

    In breaking news, sun to rise tomorrow.

  6. Right, so get rid of the temporaries, got it.
    Also, is the bloke in picture English, Welsh, Scottish or from Northern Ireland? If not, then his wages haven’t gone up.