12/5/2023 0 Comments 2016 mortgage defaultsThis has happened as wages have been surging at a record pace, with employers meeting staff demands for higher pay amid the cost-of-living crisis.Īt the same time, inflation has been easing back, from a high of 11.1% last October to 6.8% in July. In the latest data, real regular wages, not including bonuses, matched the level of Consumer Prices Index inflation in the quarter to July. If real wages are positive, it means earnings are rising at a faster pace than prices. Inflation is the term used for the rate at which prices increase over time. Real wages means earnings growth after inflation is taken into account. PA Media have published a handy Q&A on the record increase in UK wages this summer. Put to him that he was not ruling out using a lower figure based on earnings without bonuses, around 7.8%, Mr Stride said: “I’m not going to get drawn into those kinds of questions.”Īs covered this morning, basic pay excluding bonuses rose by 7.8% in the last year, less than total pay (which was bolstered by one-off payments in the NHS and civil service staff). But the overarching point about the triple lock is that we remain committed to it.” “So I didn’t want me to get into the weeds of exactly how I’m going to go about that. “There clearly is a difference if you take into account the non-consolidated elements of pay in recent times, but these are all decisions that I have to take with the Chancellor as part of a very clear process, a statutory process actually, that I go through in the autumn. That’s an intriguing approach, given today’s reports that the UK is considering tweaking how the lock works, to reduce the cost of April’s increase.Īsked whether the triple lock will be based on today’s average annual earnings growth figure of 8.5%, in the three months to July, Stride said: Stride also stressed the need for any increases to take into account “affordability and the position of the economy”. Work and Pensions Secretary Mel Stride has insisted that the UK government remains committed to the triple lock.īut…. Regular pay (which excludes bonuses) grew by 7.8%, the same as last month – and the highest since comparable records began in 2001. That could be significant for millions of pensioners, as this earnings figure is used to set the rise in the state pension the following April. That lifted the jobless rate to 4.3% in the May-July quarter, up from 4.2% a month ago, and 3.8% in the previous quarter.Įmployment fell, due to a drop in full-time self-employed workers, pulling the employment rate down to 75.5% in May to July 2023, 0.5 percentage points lower than February to April 2023.īut there’s better news on pay this morning – total pay, including bonuses, rose by 8.5% per year in the May-July quarter, helped by one-off bonus payments to NHS and Civil Service workers this summer. The increase in unemployment was largely driven by people unemployed for up to 12 months. The latest labour market report, just released, shows that UK unemployment rose by 159,000 in the last quarter, taking the jobless total up to 1.464m. UK unemployment has risen, as more people lost their jobs over the summer. Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. 07.28 BST Introduction: UK jobless rate hits 4.3%, but wage growth beats inflation
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