Real wages were negative between 2010 and 2014, which hit the UK economy hard, especially firms that targeted the consumer.
Gerwyn Davies, Labour Market Adviser at the CIPD said: "The figures also offer further evidence that Brexit has had a discernable impact on the allure of the UK as a place to live and work. The sharp growth in the number of non-UK nationals from the EU in work in the UK ground to a sudden halt in the second half of the year and has actually fallen in the last quarter.
“As a result, employers in sectors that employ relatively large numbers of EU nationals, which also account for a sizable proportion of vacancies, are likely to come under further recruitment pressures if, as we expect, this trend continues. As our Labour Market Outlook showed, the demand for labour is likely to remain strong in the near-term, which is reflected by the high number of vacancies reported in this month’s figures.“
Samuel Tombs Chief UK Economist at Pantheon Macroeconomics said: "The renewed weakening of wage growth in December is another sign that the UK.’s period of strong, consumer-led growth is about to draw to a close. . . With pay settlements remaining anchored at two per cent and recruitment consultants continuing to report sluggish growth in salaries for new hires, wage growth likely will remain weak over the coming months. Accordingly, the risk of a wage-price spiral developing this year that would require the MPC to hike interest rates continues to look very low."
Scott Bowman, UK Economist at Capital Economics, said: "the labour market appears to be dealing fairly well with the uncertainty created by the vote to leave the EU" adding "we think that wage growth will start to respond to the recent erosion of labour market slack and prevent real wages from suffering outright falls in the coming months"