Or it 10  All speeches are available online at www.bankofengland.co.uk/speeches  10  might be that pay initially only rises for workers moving jobs, and that pay for workers staying in the same job doesn’t pick up until the stock of unemployment workers is used up. That would be consistent the fact that pay growth for “switchers” has recovered by much more than pay growth for “stayers” (Chart 9). In the more recent period it might be that this is another effect of Brexit: as I argued last autumn, workers might have responded to uncertainties about the outlook by showing even more flexibility in their wage demands, or employers might be acting in a more precautionary way. Chart 9: Pay growth for “switchers” and “stayers” Median pay rise, per cent  12  Workers moving jobs 10  Workers staying in jobs  8 6 4 2 0 2001  2003  2005  2007  2009  2011  2013  2015  2017  This chart contains statistical data from ONS which is Crown Copyright. The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. This work uses research datasets which may not exactly reproduce National Statistics aggregates. A second explanation would be if technological or other developments have reduced individual workers’ bargaining power. This would be a continuation of a long run trend rather than a development specific to the financial crisis.
[14] The guidance covers risk management, operational processes, and stress testing capabilities. The responsibility of ensuring the resilience of LDI funds lies not just with LDI managers. Pension schemes which invest in LDI products must also contribute to resilience. I’ve already spoken about pension schemes’ role in ensuring LDI managers can use their resilience as collateral by remaining invested in LDI funds as they do so. Beyond this, TPR has published guidance on the responsibilities of pension scheme trustees in ensuring LDI resilience. [15] Fred Berry, from TPR, will speak about this later this morning. Pension schemes should also have regard to the Government’s broader strategy[16] to ensure that defined benefit schemes (DB) schemes in the UK are sustainable, well-governed, and that scheme members achieve better outcomes. The government is in the process of encouraging DB scheme trustee boards to more actively detect and respond to risks. Given the potential risks to financial stability from DB pension schemes, this work is essential. How can this framework enhance resilience in non-banks more widely? Now I would like briefly to change tack and think about whether our approach to LDI funds’ resilience might also be relevant when considering the appropriate resilience of other non-banks whose activities can impact UK financial stability. As non-banks play a greater role in the financial system[17] as well as the real economy[18] we will  Page 6  continue to ask questions on the resilience of non-banks[19] so that they absorb rather than amplify shocks. What vulnerabilities have we identified?