Blue-chip stocks to consider amid falling UK wages: BA., PSON, SHEL

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Highlights

  • UK real wages continued to decline in June amid the spiraling cost of living squeeze.
  • Rising inflation countered the rise in wages, leading to an overall decline in real wages of UK workers.
  • Even though job vacancies were almost at record high levels, the latest data pointed towards initial signals of a slowdown in hiring demand by employers.

While the cost-of-living crisis continues to grow in the UK, the real value of the pay received by workers fell in June at the fastest speed in 20 years. Rising inflation countered the rise in wages, leading to an overall decline in real wages of UK workers.

According to the latest figures published by the Office for National Statistics (ONS), the growth in the average pay of UK workers, excluding their bonuses, went up to 4.7% in the three months to June on annual basis in the economic scenario of less unemployment and higher job vacancies.

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However, taking inflation into consideration, the real value of the pay packets of workers declined by the sharpest rate since records started in 2001, plunging by 3%. Average earnings, which included the bonuses, stood at 5.1%, but they still couldn’t rise in line with the escalating cost of living.

Even though job vacancies were almost at record high levels, the latest data pointed towards initial signals of a slowdown in hiring demand by employers. The ONS data showed that the unemployment level in the three months to June climbed marginally to 3.8%. However, for the first time since the summer of 2020, there was a decrease in the number of new job opportunities.

 

Amid falling real wages, UK investors can protect their money and make decent gains by investing in the following blue-chip stocks suggested by Kalkine Media®.

BAE Systems plc (LON: BA.)

The shares of the global operating arms, security, and aerospace business, BAE Systems plc, plunged by 0.58% as the market opened at around 8:00 AM (GMT+1) on Wednesday. BA. On was trading at GBX 794.80 on 17 August and has offered its investors YTD returns of 44.56%. BA. Offers an annual dividend yield of 3.2% and had a positive EPS of 0.55. The market cap of the company stood at £25,114.45 at present.

Pearson plc (LON: PSON)

Leading publishing and education firm Pearson plc, surged by 0.32% at 8:15 AM (GMT+1) on Wednesday and was trading at GBX 881.00. The FTSE 100 company has offered good returns to its investors on one-year and YTD basis as of 17 August, which stand at 13.21% and 43.64%, respectively. Pearson on Wednesday enjoyed a market cap of £6,463.65 at present with an annual dividend yield of 2.4%.

Shell plc (LON: SHEL)

The shares of the globally leading oil and gas business, Shell plc, rallied by 0.07% at 8:20 AM (GMT+1) on Wednesday, trading at GBX 2,170.00. The FTSE 100 company has offered significant returns to its investors on one-year and YTD basis as of 17 August, which stand at 53.83% and 33.89%, respectively. With a market cap of £158,362.35, the SHEL offered a dividend yield of 3.7%, SHEL investors are enjoying a positive EPS of 2.59. 


 

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