Brexit Britain has scored a huge victory after economists said it would lead to wage rises in the European Union.
Economists have said that a reduction in immigration from the EU has meant that British workers have more bargaining power and the ability to demand higher wages.
Senior analysts said the pay rise was partly driven by the decline in people coming from the EU to the UK for work.
They also said that this situation was unlikely to change as Britain adjusts to being outside the EU.
In addition, economists said that despite the Brexit benefit, the vote was taboo.
Speaking to the Telegraphhead of global strategy at French bank Natixis said: “We have a reasonable demand for labor but when you look at the supply, it has been cut dramatically because of Brexit.
“It creates inequality that continues to fuel wage growth and this situation is here to stay.”
The news comes as figures released last week showed wages were growing at a record pace of 7.7 per cent.
In the run-up to the vote, leave campaigners argued that leaving the EU would allow more for the British public.
A letter signed by the likes of Boris Johnson and Michael Gove in May 2016 said: “People working outside the EU will have higher wages… because uncontrolled migration will not lower wages.”
Economist Marion Amiot agreed, saying: “It’s much harder to get people from Europe so UK-based employees have better bargaining power and it means they can get higher wages .
“Obviously immigration is still quite high on a net basis but it’s not the same immigrants, so the skill set they bring is a bit different than before.”
Indeed’s senior economist, Jack Kennedy, said: “Obviously immigration is still quite high on a net basis but it’s not the same immigrants, so the skill set they bring is a bit different than before. “
However, despite the Brexit victory, there is a growing argument that the pay rises are being wiped out by the skyrocketing cost of living.
The situation has become so bad that one charity which helps people with living costs has had to pause new referrals due to “unprecedented demand” for their services.
A spokesperson for the Bryston Charity Group told the BBC: “To ensure that we are able to meet the needs of the target 10,000 remaining families over the most difficult months of winter, we have decided to temporarily pause new referrals when this stage of applications closes on Tuesday 21 November.”
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