Recession puts pressure on wage deals

Article Abstract:

Employers are not likely to give into excessive wage demands from employees due to the squeeze exerted by the recession on company profits. The economies of the European Community (EC) grew by approximately 3.25% annually over the last four years, which has created pent-up inflationary pressure. With the downturn of the business cycle and declining profitability, any wage increases would severely reduce corporate profitability. There is little risk of a major increase in wages in 1991. However, employees and unions will experience a decline in real wages due to inflation and seek compensation in the form of wage increases. The pressure for wage increases will peak in the first half of 1991, and wage growth will increase by 5.7% by the fourth quarter of 1991.

Europe, Inflation (Finance), European Union, Wages, Wages and salaries, Recessions, Collective bargaining, Inflation (Economics), European Community

---

Bang goes the housing boom

Article Abstract:

Statistics from the Nationwide Anglia House Price Index reveal that UK housing prices declined 5% in nominal terms by the first quarter of 1990 versus the third quarter of 1989, the all-time high. In the 1980s, housing prices typically rose 10% annually. The decline is the first recorded since 1954. Despite the recent decrease in housing prices, the cost of the purchase of a home as a proportion of average earnings is at a record high. This situation has caused the decline in house prices, which must continue to fall in order to make houses affordable. A 5% decrease in house prices is forecast for the entire year 1990, which would be the largest yearly fall in prices since the 1950s.

United Kingdom, Housing, Great Britain

---

Similar abstracts:

• Abstracts: Inflation takes the boom out of the economy. Will the giant grow
• Abstracts: IRS clarifies when economic performance is met by accrual-basis taxpayers
• Abstracts: Small businesses - what the researchers say. Simply does it for charity accounting. Keeping faith in charities
• Abstracts: The design school: reconsidering the basic premises of strategic management. Visionary leadership and strategic management
• Abstracts: Sales: the interpersonal touch. It's in the post. Make your client base sparkle

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.