The gap between earnings and prices is increasing according to figures released this morning by the Office for National Statistics
Between March and May, pay excluding bonuses was down 2.8% from a year earlier when adjusted for inflation – the fastest drop since records began.
The unemployment rate for March to May 2022 decreased by 0.1 percentage points on the quarter to 3.8% with 31,000 people added to the payroll count
The ONS head of labour market and household statistics, David Freeman, described the figures as a “mixed picture” after the increase in people in work was offset by a persistent failure among most workers to protect themselves from inflation with a higher pay rise.
“The number of people in employment remains below pre-pandemic levels and, while the number of people neither working nor looking for a job is now falling, it remains well up on where it was before Covid-19 struck,” Freeman said.
Gary Smith, GMB General Secretary, said:
“These worrying figures show that real pay is dropping fast and, with no action from a rudderless government, things are likely to get even worse for working people.
“The value of pay packets is plummeting and employers need to get wages rising or workers will face impossible choices on how to pay their bills as the cost of living crisis becomes a catastrophe.
“The best way to ensure living standards are protected is to empower trade unions. GMB is showing the way, winning above inflation pay-rises for workers across the country.”
Matthew Percival, CBI Director for People and Skills policy, said:
“Persistent labour and skills shortages are hitting growth and business investment, exacerbating the cost-of-living crisis. Boosting business confidence to accelerate growth should be front of mind for the current and next Government.
“The Government should make the skills and immigration systems responsive to shortages by updating the Shortage Occupations List, the courses eligible for the Lifetime Skills Guarantee, and reforming the Apprenticeship Levy to unlock business investment in the full range of skills the economy needs.”
