Take home Pay has overtaken inflation for first time in almost two years according to figures out this morning
Annual growth in regular pay (excluding bonuses) was 7.8% in June to August 2023 according to the Office for National Statistics
it is one of the highest regular annual growth rates since comparable records began in 2001.
Meanwhile the number of payrolled employees rose by 1.2% compared with September 2022, a rise of 369,000 employees; the number was up by 3.8% since February 2020, a rise of 1,102,000.
Ben Harrison, Director of the Work Foundation at Lancaster University commenting on the figures said:
“Today’s ONS figures suggest total pay growth remains at historically high levels but that doesn’t paint the full picture. One-off bonuses within the public sector linked to new pay deals and cost of living payments mean that total pay in the public sector has risen by a record 12.5% from June to August 2023.
“But ultimately the data suggests that with inflation still above six per cent, workers’ real wages have only grown by 1.1% on the year, andmany in lower paying sectors like construction and retail are likely to have seen no growth at all.
“While vacancies remain above pre-pandemic levels at 998,000, today’s data indicates a 15thconsecutive fall, with 14 of 18 industry sectors showing a reduction in hiring.
“With temperatures plummeting and cost of living pressures still high, it is welcome the Chancellor has announced the National Living Wage will rise for over two million low-paid workers in April. But further talk from the Prime Minister and Chancellor of tougher benefit sanctions will only heighten anxiety amongst people in low paid and insecure work who are already on the edge of employment.
“While we await further labour market data this month, it is likely vacancies will continue to drop as the labour market slows amidst economic uncertainty and the Chancellor must use his upcoming Autumn Statement to provide additional support to workers, job seekers and employers.”
