UK wage growth has edged back from record highs but earnings are outstripping inflation at the fastest pace for two years, according to official figures.
The Office for National Statistics (ONS) said average regular earnings, excluding bonuses, increased by 7.7 percent in the three months to September, down from an upwardly revised and record high of 7.9 percent in the previous three months.
The data showed that wages rose one percent when factoring in Consumer Prices Index inflation (CPI), marking the highest increase in real wages since the three months to September 2021.
Britain’s rate of unemployment is estimated to have remained unchanged at 4.2 percent in the third quarter. However, signs of strain are evident in the job market as vacancies have dropped to the lowest level in over two years, declining by 58,000 quarter-on-quarter to 957,000.
Darren Morgan, ONS director of economic statistics, said: “Our labour market figures show a largely unchanged picture, with the proportions of people who are employed, unemployed or who are neither working nor looking for a job all little changed on the previous quarter.
“The number of job vacancies fell for the 16th straight month. Nevertheless, vacancies still remain well above their pre-pandemic levels. With inflation easing in the latest quarter, real pay is now growing at its fastest rate for two years.”
The estimated number of payrolled employees has hit 30.2 million – 398,000 higher than this time last year and 1.2 million higher than before the pandemic. Although ONS says this number should be treated as “provisional” as it’ll likely need to be revised next month.
Commenting on the data, Mel Stride, secretary of state for work and pensions, said: “We are leaving no stone unturned to help people into work, with a record number of employees on payrolls – up nearly 400,000 in the last year alone with 3.9 million more people in work than in 2010.
“With our ambitious welfare reforms, including the expansion of free childcare and extra support for people with health conditions, we are taking long-term decisions that will grow the economy and change lives for the better.”
More to follow…
