We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Another 108,000 staff joined payrolls between December and January and wages rose, but once inflation was taken into account pay actually fell by 0.8 percent in a year, said the Office for National Statistics.
Unemployment dipped by 0.2 percent to 4.1 percent in the three months to December as employment eased up 0.1 percent to 75.5 percent.
Pay growth rose to 4.3 percent in three months to December from 4.2 percent for the quarter to November.
Wages for payroll workers went up by an average 6.3 percent in January against the same month last year and 10.3 percent compared with February 2020.
Rises outstripped inflation in some sectors with high demand for staff, such as finance, insurance, communication and hotels.
But wages overall continued to lag behind inflation which soared to a near 30-year high of 5.4 percent in December.
Households are facing a massive hit to incomes in April when energy bills increase, inflation is expected to hit seven percent and national insurance rises by 1.25 percent.
Sam Beckett, head of economic statistics at the ONS, said: “Our Labour Force Survey shows the number of people in employment overall is well below where it was before Covid-19 hit.
“This is because there are now far fewer self-employed people.”
The data also revealed record vacancy levels, with advertised job openings rising to 1.29 million for the three months to January, a 513,700 increase on pre-pandemic levels.
Rishi Sunak insisted the Government is helping to ease the burden on struggling households. The Chancellor said: “We’re continuing to help more people into work and are providing support for the cost of living worth over £20billion across this financial year and next.”
Matthew Percival, CBI director for People and Skills, said: “The good news is that the UK economy is continuing to create jobs. The bad news is that businesses are struggling to hire and pay is failing to keep up with inflation.”
Suren Thiru, head of economics at the British Chambers of Commerce, said: “Record vacancies underscore the critical hiring crisis facing firms.
With high economic inactivity indicating that many people have left the jobs market altogether, chronic staff shortages are likely to weigh on the UK economy for a sustained period.”
The Police Federation of England and Wales’ Pay and Morale Survey of nearly 30,000 officers found the wage freeze, rising inflation and the pandemic meant 14 percent were “never or almost never able” to cover monthly essentials, twice as many as last year.
Frances O’Grady,TUC general secretary, said: “Working families need financial security. But they face a perfect cost-of-living storm. Pay packets are plummeting in value as bills and prices sky-rocket.
“This huge pressure on household budgets will only get worse unless the Government takes proper action.
“After the longest wage squeeze in more than 200 years, Britain urgently needs a pay rise.”
What is happening where you live? Find out by adding your postcode or visit InYourArea
Last week Morgan Wild, Citizens Advice head of policy, told MPs: “Over the past month Citizens Advice has seen a record demand since the pandemic began of people coming to us for advice.
“We’re seeing records for crisis support – referrals for food banks and other support – and we’re seeing record numbers for fuel debts.”
Source: Read Full Article