UK average earnings have risen for the first time in over a year but the job market cooled following the Government’s Budget.
UK average wages rose by 5.2% in the three months to October, the latest data from the Office for National Statistics (ONS) reveals.
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Wages including and excluding bonuses were up 0.3% from 4.9% from the three months before.
Annual average earnings were up 4.4% from the year before, the ONS said.
The latest data means wages in the three months to October were outstripping inflation, which currently sits at 2.3%.
It comes after separate data revealed yesterday UK companies have started cutting jobs at the fastest rate in almost four years following the Government’s Budget.
Liz McKeown, director of economic statistics at the ONS, said: “After slowing steadily over a year, growth in pay excluding bonuses increased slightly in the latest period, driven by stronger growth in private sector pay.
“Pay growth including bonuses increased by more, but this reflects previous figures being affected by the one-off payments made to some public sector employees.”
However, separate published today by the ONS estimated the number of people in the UK on payrolls fell by 35,000 to 30.4million between October and November.
This data is subject to revision though.
The ONS added the number of job vacancies across the UK was 818,000 between September and November, a fall of 31,000.
Liz McKeown, from the ONS, added: “The number of people on payrolls grew slightly in October, but we have seen annual growth rates continue to slow, showing a consistent trend with out latest jobs data from employers.
“The number of job vacancies has also fallen again, thought the total remains a little above where it was before the pandemic.”
Today’s data comes as the private sector cut jobs at the fastest rate for nearly four years in December.
The latest S&P Global Flash UK Purchasing Managers’ Index (PMI) found companies reported the sharpest fall in the number of workers since January 2021, during the coronavirus pandemic.
The drop-off was blamed on a combination of softer demand for roles, rising employment costs and squeezed margins for companies.
It comes after the Government Budget hiked employers National Insurance Contributions (NICs).
Fears have been raised the hike in contributions on top of a minimum wage rise next year will lead to workers being laid off or wages stagnating as businesses absorb the added costs.
Liz Kendall, work and pensions secretary, said: “Today’s figures are a stark reminder of the work that needs to be done.
“To get Britain growing again, we need to get Britain working again – so people have good jobs which pay decent wages and offer the chance to progress.”
What it means for your money
Growing wages are good news for workers as it means they are getting more in their pay packets each month.
This, in turn, is good news for the government as it means more people are pumping money into the economy.
This leads to a rise in Gross Domestic Product (GDP), which is a sign an economy is healthy and doing well.
It also means the government has more money to spend on public services like schools, hospitals and libraries which benefits you.
