Regular pay has experienced the biggest drop in more than 20 years when price increases are taken into account, the National Statistics Office said.
Real wages, a measure of regular wage growth when inflation is taken into account, fell 3.7% from March to May, the ONS said.
This was the worst year – on – year drop since records began in 2001.
“After the latest rises in inflation, wages are now clearly falling in real terms both including and excluding bonuses,” said David Freeman, head of the ONS labor market and family statistics.
Households in the UK are seeing their purchasing power eroded by rising fuel and energy costs.
Real wages were 3.5% successful during the year to May, an improvement over the April figure of 4.5%, but even worse than at any other time recorded.
The employment rate remains below pre-pandemic levels despite rising 0.4 percentage points to 75.9%.
While the number of people not working or looking for work is now declining, it remains well up to what it was before COVID-19.
“With labor demand clearly still very high, unemployment fell again, employment rose, and there was another historic low of layoffs,” Freeman said.
DWP Minister Julie Marson said it was “fantastic news” that the UK now has two million more employed women than in 2010, adding that the latest OECD data show that the country has the second highest level of women employed in the G7.
“As we grow the economy, it is vital that we make sure that everyone can find a job that is right for them and, most importantly, that they can progress in the job,” he said.
“That’s why we continue our support to get people of any age or career stage to work, including a new multi-million pound offer to help those over 50 enter and stay in a job.”