The British business plans to introduce the largest increase in basic salary for the last seven years. This is clear from a study by the Chartered Institute of Personnel and Development (CIPD). According to the data, the reason for the growth is the difficulty finding of cadres on the one hand and the need for the remuneration to be competitive.

The CIPD states that private sector employers plan to increase the basic wage this year by an average of 2.5%. This is the largest growth since the survey began in 2012.

The British labor market has been resilient to the Brexit shocks, with unemployment in the country at its lowest level since the mid-1970s, despite the weakening of economic growth in 2018 to its lowest level since 2012.

The country’s official wage data, due to be published Thursday, is expected to show that wages in the UK have grown at the fastest pace since 2008, reaching 3.5% annually in the fourth quarter of 2018.

Inflation is the main reason cited by companies in the CIPD survey for an expected wage increase of more than 2%. The other leading reasons for the rise are also the problems of recruitment and retention, as well as wage increases in competition.

Despite the uptrend, however, wage growth remains weaker in the long run, with wages still lower in real terms than those on the eve of the financial crisis more than a decade ago.

According to CIPD, the reason is the limitation of productivity. Productivity is 22% lower than if the trend before the financial crisis had continued. As a result, pay growth is terribly lagging behind.

However, public sector workers will not see such a rapid increase in wages. The CIPD says expectations are that wage growth there will slow down to 1.1% this year after it reached 2% over the previous one.

As a result, the average wage growth forecast for the British economy remains unchanged at 2%.