Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK wage growth edges back to 7.7% adding to inflation woes

by November 14, 2023
November 14, 2023
UK wage growth edges back to 7.7% adding to inflation woes

Wages continued to grow at one of the fastest paces on record in the three months to September, underlining that inflation in the UK will take time to return to the Bank of England’s 2 per cent target.

Regular pay excluding bonuses increased 7.7 per cent, down slightly from the 7.8 per cent growth in the previous three months, according to the Office for National Statistics (ONS).

The figure was in line with analysts’ expectations. It is also the third month in a row that pay has risen faster than inflation, meaning that real wages expanded 1.3 per cent over the past quarter. However, real pay still has some way to go to recover fully from the near two-year long cost of living crisis. Including bonuses, wages climbed 7.9 per cent, well above forecasts for 7.3 per cent growth.

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.

“With inflation easing in the latest quarter, real pay is now growing at its fastest rate for two years.”

Low response rates to the ONS’s labour market survey have raised doubts over whether it is an accurate reflection of the employment and pay situation in the UK. It has suspended the publication of its usual data and instead used alternative sources of information, such as benefit claimants and HM Revenue & Customs payroll numbers, to generate an unemployment estimate of 4.2 per cent, unchanged compared with the previous quarter.

The statistics agency said that it would resume publishing its usual labour force data in December and that it would have its revamped survey operational next spring.

The absence of robust ONS data has posed challenges for the Bank of England, which is trying to shepherd inflation back to the 2 per cent target, partly by curbing wage growth and demand for workers. The central bank has turned to other pieces of data to understand how the workforce is holding up amid higher interest rates.

The UK base rate has been increased at the quickest pace since the 1980s to 5.25 per cent, a 15-year high, in order to curb inflation. New ONS figures tomorrow are expected to show that inflation dropped to 4.8 per cent in October, its lowest level in two years.

Vacancies fell 58,000 to 957,000 in the three months to October and now are far below their peak of over 1 million.

Pay growth has been pushed up to historic highs by workers demanding better compensation to offset the impact of rising prices over the past two years. A shortage of skilled workers has also led businesses to raise starting pay to attract new staff.

Read more:
UK wage growth edges back to 7.7% adding to inflation woes

0
FacebookTwitterGoogle +Pinterest
previous post
Industry leaders debate UK’s net zero action plan in Parliament
next post
Firms invited to access funded support as part of £1.8million project led by Lancaster University to boost uptake of digital technology and AI

You may also like

Government set to return to Truss’s tough strike...

December 7, 2022

UK economy growth prospects gloomier than predictions leaving...

January 25, 2023

Bank of England boss signals interest rates may...

March 2, 2023

Carmakers face further hurdle as pound falls

September 29, 2022

Verity Blake: Driving PR Excellence with HeadOn Public...

August 1, 2024

HMRC urged to increase car mileage allowances

September 30, 2022

The cost of living survival handbook for businesses

November 22, 2022

The Psychological Effects of Medical Negligence

March 20, 2023

Barclays calls for downsizers tax break to free...

October 10, 2024

Reeves considers ending salary sacrifice tax breaks for...

October 18, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved