UK wages in June fall at fastest rate for 20 years

theguardian.com:

The real value of UK workers’ pay continued to fall at the fastest rate for 20 years in June as wage increases were outstripped by soaring inflation amid the cost of living crisis.

The Office for National Statistics said annual growth in average pay, excluding bonuses, strengthened to 4.7% in the three months to June against a backdrop of low unemployment and high job vacancies.

However, the real value of workers’ pay packets dropped by 3% – the fastest decline since comparable records began in 2001 – after taking account of its preferred measure of inflation.

Growth in average earnings including bonuses was 5.1%, although also failed to keep pace with the soaring cost of living.

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Unemployment held at 3.8% in the three months to June, close to the lowest levels since the 1970s. However, there were early signs of a slowdown in hiring demand among employers as the number of job vacancies dropped for the first time since summer 2020.

The chancellor, Nadhim Zahawi, said the latest figures showed Britain’s jobs market was in a strong position, with unemployment lower than at almost any point in the past 40 years. “[That is] good news in what I know are difficult times for people,” he said.

“Although there are no easy solutions to the cost of living pressures people are facing, we are providing help where we can. We are delivering a £37bn package of help for households through cash grants and tax cuts so people can keep more of what they earn.”

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