According to recent data, wage growth in the UK did not keep pace with rising living costs between November and January.
Wage growth in the UK increased, but when rising costs were factored in. Regular pay fell 1% from a year ago, according to the Office for National Statistics. It comes amid fears that the conflict in Ukraine would drive up household energy and food costs even further.
The new numbers also reveal that the number of unemployed persons in the UK has decreased to levels seen before the outbreak.
According to the ONS, there were 1.34 million unemployed in the three months leading up to January. Down from 1.36 million in December to February 2020.
In the most recent quarter, the unemployment rate fell to 3.9 percent, while job openings reached a new high.
Employees’ normal compensation, excluding incentives, increased by 3.8 percent between November and January, according to the ONS.
However, rising food, energy, and home goods prices have pushed inflation to a 30-year high. This evaluates how the cost of living varies over time. Prices increased by 5.5 percent in the year to January, compared to 5.4 percent in December. This is putting more strain on household budgets.
The Resolution Foundation, a think tank, has warned that the burden on employees will get harsher, with those on low incomes being the most vulnerable to rising costs.
Fall In Unemployment
According to the ONS, the number of unemployed persons fell below pre-pandemic levels for the first time in February. While the number of pay-roll employees increased sharply again.
“However, the number of people out of work and not seeking for work climbed again. Meaning total employment remained well below its pre-pandemic level,” said Grant Fitzner, chief economist at the ONS.
Early estimates from the ONS for February 2022 suggested that median monthly salary was £2,041, up 5.1 percent from the same period last year.
According to a recent study from the Institute for Fiscal Studies, public sector employees, in particular, are facing compensation cutbacks after rising prices are factored in.
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