[UK] Record number of workers on payroll but wage growth can’t keep up with inflation

The number of UK workers on payroll has reached a new record but wage growth is still not keeping up with the cost of living crisis, Mirror reports.

The Office for National Statistics (ONS) said the total for those on a payroll system rose by 275,000 between January and February to 29.7 million.

Average earnings growth for regular pay, excluding bonuses, was 3.8 per cent in the three months to January - significantly behind inflation which currently stands at 5.5 per cent.

In real terms wages fell by 1 per cent when taking into account the cost of living, the ONS said. It is the steepest decline since July 2014.

Wages including bonuses were up by 4.8 per cent, however, this is only a 0.1 per cent real terms increase.

Experts say inflation could soar higher still over the coming months; with some suggesting it could hit more than 7 per cent.

The unemployment rate is lower than expected at 3.9 per cent, down from 4.1 per cent in the three months to December. But the figures reportedly point to a growing struggle for businesses trying to recruit new workers.

The number of vacancies in the three months to February hit a new record of just over 1.3 million, according to the ONS.

Grant Fitzner - chief economist at the Office for National Statistics (ONS) - said, "The labour market continues to recover from the effects of the pandemic, with the number of unemployed people falling below its pre-pandemic level for the first time and another strong rise in employees on payroll in February.

"However, the number of people out of work and not looking for a job rose again, meaning total employment remained well below its pre-pandemic level.

"We have seen yet another record number of job vacancies, and with the redundancy rate falling to a new record low, demand for workers remains strong.

"Because bonuses have continued at high levels for some workers, total earnings growth just kept ahead of rising prices over the past year, though regular pay has dropped again in real terms."

Mims Davies - Minister for Employment - said, “These figures show unemployment remains low, below pre-pandemic levels for the first time, and employment is continuing to grow, providing a stable foundation as new global challenges emerge.

"With record numbers of vacancies out there, our focus is on helping people build their skills and improve their prospects by moving into work.

“We are connecting thousands of job-ready claimants to live opportunities, giving them a platform to progress and pursue a career.

“To achieve this, we are working with a wide range of sectors to create and maintain a workforce that is skilled, productive, reliable and resilient.”

Source: Mirror

(Quotes via original reporting)

The number of UK workers on payroll has reached a new record but wage growth is still not keeping up with the cost of living crisis, Mirror reports.

The Office for National Statistics (ONS) said the total for those on a payroll system rose by 275,000 between January and February to 29.7 million.

Average earnings growth for regular pay, excluding bonuses, was 3.8 per cent in the three months to January - significantly behind inflation which currently stands at 5.5 per cent.

In real terms wages fell by 1 per cent when taking into account the cost of living, the ONS said. It is the steepest decline since July 2014.

Wages including bonuses were up by 4.8 per cent, however, this is only a 0.1 per cent real terms increase.

Experts say inflation could soar higher still over the coming months; with some suggesting it could hit more than 7 per cent.

The unemployment rate is lower than expected at 3.9 per cent, down from 4.1 per cent in the three months to December. But the figures reportedly point to a growing struggle for businesses trying to recruit new workers.

The number of vacancies in the three months to February hit a new record of just over 1.3 million, according to the ONS.

Grant Fitzner - chief economist at the Office for National Statistics (ONS) - said, "The labour market continues to recover from the effects of the pandemic, with the number of unemployed people falling below its pre-pandemic level for the first time and another strong rise in employees on payroll in February.

"However, the number of people out of work and not looking for a job rose again, meaning total employment remained well below its pre-pandemic level.

"We have seen yet another record number of job vacancies, and with the redundancy rate falling to a new record low, demand for workers remains strong.

"Because bonuses have continued at high levels for some workers, total earnings growth just kept ahead of rising prices over the past year, though regular pay has dropped again in real terms."

Mims Davies - Minister for Employment - said, “These figures show unemployment remains low, below pre-pandemic levels for the first time, and employment is continuing to grow, providing a stable foundation as new global challenges emerge.

"With record numbers of vacancies out there, our focus is on helping people build their skills and improve their prospects by moving into work.

“We are connecting thousands of job-ready claimants to live opportunities, giving them a platform to progress and pursue a career.

“To achieve this, we are working with a wide range of sectors to create and maintain a workforce that is skilled, productive, reliable and resilient.”

Source: Mirror

(Quotes via original reporting)