Average wages in the UK have been falling at the fastest pace in more than a decade, as annual wage growth does not keep pace with rising cost of living.
The National Statistics Office said annual growth in regular pay, excluding bonuses, fell 2.2% in the three months to April after adjusting for its preferred measure of inflation, the biggest drop since November 2011.
Average total wages, including bonuses, rose slightly by 0.4% thanks to the rise in payments to the financial sector.
British households face intense pressure on living standards, as revenue growth does not keep pace with rising energy bills and rising weekly store costs, with inflation at the highest rate since the early 1980s.
However, workers in some sectors, mainly in private sector jobs in finance, IT and business services, are benefiting from stronger wage growth amid lower unemployment rates in the last 50 years. years and record job offers.
The ONS said a sharp rise in the city’s bonuses helped grow the average total wage, including bonuses across the economy, to 6.8% in the three months to April before that inflation be taken into account. Average regular pay, not including bonus payments, rose 4.2% before inflation.
Highlighting the unequal impact of the cost of living crisis, amid the threat of a strike on railways and other industries amid bitter wage disputes, the average public sector wage rose only 1.5%, compared to 8 % of the private sector.
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Analysts said difficult labor market conditions were helping to boost wage growth before inflation was taken into account, and the latest figures show a further rise in the number of vacancies across the economy to a new record high. of 1.3 million.
Unemployment rose slightly month-on-month to 3.8% from 3.7% in March, although it remained among the lowest levels since the 1970s.
Rishi Sunak said the figures showed that the labor market remained robust with layoffs at record lows. “Helping people work is the best way to support families in the long run, and we continue to support people in new and better jobs,” he added.