UK wage growth failed to keep up with the high cost of living between October and December, officials figures show. Wages rose but when taking inflation into account, pay showed a 0.8% fall, said the Office for National Statistics.
Despite this, the economy continued to recover strongly, with unemployment falling to 4.1% and job vacancies hitting a fresh record high. Unemployment is now “only fractionally” above where it was before the pandemic.
According to the ONS, employees’ regular pay, excluding bonuses, grew by 3.7% between October and December – which is high compared with rates seen over the last decade.
However, the rising cost of food, energy and household goods has pushed inflation up by 5.4% in the 12 months to December. This means that real wage growth fell.
The ONS said the labour market was “tightening” as employers continue to struggle to find the workers they need.
The number of job vacancies between November and January hit a new record of 1.3 million, with most industries finding it harder to recruit.
Source: bbc.com
