The big squeeze continues: Pay tumbles by 3.9% compared to inflation as job vacancies dip in worrying sign for economy – but unemployment eases again to a 50-YEAR low
- New figures show wages still struggling to keep up with spiking inflation level
- Taking CPI rate into account regular pay was down by 3.9 per cent year-on-year
- Unemployment is at lowest level since 1974 but signs jobs market is weakening
The continuing big squeeze on Britons was laid bare today as figures showed wages tumbling.
Although regular pay – excluding bonuses – was ticking up by 5.2 per cent in the quarter to July, that was far behind inflation.
Taking soaring headline CPI rate into account wages fell 3.9 per cent year-on-year, while total pay was down 3.6 per cent.
Meanwhile, there were mixed signs for the jobs market – with vacancies dropping from record highs, but unemployment easing to the lowest level since 1974 at 3.6 per cent.
The latest snapshot was released after inflation jumped to a fresh 40-year high of 10.1 per cent in July as energy and food bills sent costs into orbit.
The Government’s move to freeze energy bills at £2,500 is set to rein in the rampant increases and could reduce pressure for the Bank of England to lift interest rates.
Although regular pay – excluding bonuses – was ticking up by 5.2 per cent in the quarter to July, that was far behind inflation
However, few experts expect wages to keep pace with prices.
The Office for National Statistics said the number of UK workers on payrolls rose by 71,000 or 0.2 per cent, between July and August to 29.7million.
The number of job vacancies was 1,266,000 over those three months, down 34,000 from the previous quarter in the largest fall since the height of the pandemic.
While unemployment dropped, employment was also lower by 0.2 percentage points in May-July at 75.4 per cent.
The figures follow GDP data yesterday showing the economy grew by just 0.2 per cent in July – worse than anticipated.
New inflation figures are due to be published tomorrow.
The figures follow GDP data yesterday showing the economy grew by just 0.2 per cent in July – worse than anticipated
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