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Inflation and industrial unrest in UK threaten graphics of problem | Expenses of living crisis

FROMrapid inflation, economy sinking to the bottom of global league tables and summer of strike ahead. As Boris Johnson tries to reset the political agenda, the economic backdrop can hardly be worse.

This week government will face more anxious news, with official numbers on expected on Monday show in economy was close to stopping in April when families fought with a record rise in energy bills. On Tuesday, there will probably be fresh data. confirm wage again failed keep pace with in cost of live while the bank of England expected to raise interest rates to tighten the screws on household and business borrowing.

To mend a bruised political reputation and prevent a recession prime minister He is said to be planning a major reboot speech on in economy soon. However, Johnson is facing additional headaches from the strike that could extend into the summer. of discontent.

On the background of high inflation, falling living standards and severe labor shortages in some sectors, arguments over pay is inevitable. Railway workers plan three days of national strikes this month in the biggest strike since 1989 since the unions demand A fair deal on payment and guarantee against job cuts.

Until now, Johnson has sought confrontation, warning that larger wage agreements could threaten 1970s-style wages.price spiral, which force Threadneedle Street to push up interest rates next. In the middle of in cost-of- life crisis also wants to cut more than 90,000 public sector jobs. But outside the railroads, more strike may come down track.

National Health Service workers in England getting ready for a below-inflation wage agreement that would cause nurses to suffer £1,600. real-terms hit to your income year. government expected to announce series of pay for transactions public sector for in current financial year soon, backdated to April. The ministers stated that “financial restraint” is necessary, but it is fraught with riots. Viral video from last week of nurse tells patients in crowded A&E what they could face 13-hour wait caused a stir for many NHS staff.

Public sector employees have good reason to be angry. Those on in national wages, including millions who served on Front line of pandemic – face much slower pace of wage growth than the country as a whole. Official data show annual private industry pay rising by 8.2% compared with just 1.6% in in public sector. This means that doctors, police, teachers and civil servants facing a lot more hit to the standard of living from a sharp rise in inflation.

In contrast, urban workers received huge payouts after the boom. in Bank bonuses and fast payment growth for IT and professional services workers. Great Britain facing fresh rise in inequality that was already at a high level decades later of low average salary growth.

However, the strike may still be limited to certain pockets. of in economy. Union membership is in record low after decades of decline, down from the top of more than 13 million in 1970s to 6.4 million last yearless than quarter of work force. With the fall in figures came decline in strikes, with number of days lost due to strikes in one of his lowest performance since recording began in 1890s. This trend is likely to be reversed year-on-year, but will not come close to records set in 1970s and during general strike of 1926

Like a governor of bank of England, Andrew Bailey, warned workers with the smallest bargain power to demand higher the fee will bear the brunt of inflation. Those in underpaid and unreliable work on zero-hours contracts will face the biggest hit.

If a national the railroad strike continues, it will come with a cost. Although more people Can work from home after the pandemic spurred rise in remote worker, oh half of labor force cannot. Center for Economic and Business Research estimates that the three-day strike cost £91m in exit lost.

The effects of the strikes exacerbated the bleak economic outlook. prime ministerreboot plan can soon be ripped off.

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Adrian Ovalle
Adrian Ovalle
Adrian is working as the Editor at World Weekly News. He tries to provide our readers with the fastest news from all around the world before anywhere else.

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