UK earnings up by 7.7% as unemployment rate stays the same, ONS says

Real terms pay is growing at its fastest pace for two years but cracks are showing in the job sector, ITV News Business and Economics Editor Joel Hills reports on the latest unemployment figures

UK wage growth is no longer at record highs but earnings are outstripping inflation at the fastest pace for two years, according to The Office for National Statistics (ONS).

The body said average regular earnings, excluding bonuses, increased by 7.7% in the three months to September.

This is down from an upwardly revised and record high of 7.9% in the previous three months.

The data showed wages did rise by 1% after taking Consumer Prices Index inflation (CPI) into account, the highest increase in real wages since the three months to September 2021.

Britain’s unemployment rate is estimated to have stayed the same, at 4.2% in the third quarter.

But more cracks are appearing in the jobs sector, with vacancies falling to the lowest level for more than two years, down 58,000 quarter-on-quarter at 957,000.

Darren Morgan, ONS director of economic statistics, said: “Our labour market figures show a largely unchanged picture, with the proportions of people who are employed, unemployed or who are neither working nor looking for a job all little changed on the previous quarter.

“The number of job vacancies fell for the 16th straight month. Nevertheless, vacancies still remain well above their pre-pandemic levels.

“With inflation easing in the latest quarter, real pay is now growing at its fastest rate for two years.”

Chancellor Jeremy Hunt said: “It’s heartening to see inflation falling and real wages growing, keeping more money in people’s pockets.

“Building on the labour market reforms in spring, the autumn statement will set out my plans to get people back into work and deliver growth for the UK.”

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