The cost of living squeeze tightened for millions of workers in the three months to April when base pay fell 2.2 per cent after taking inflation into account, official figures revealed today.
Regular pay excluding bonuses was up 4.2 per cent during the period, according to the Office for National Statistics (ONS). But with soaring energy and food prices fuelling a rate of inflation well above that most people were getting worse off.
However, if bonuses are included average total pay was up 6.8, equivalent to a 0.4 per cent rise in real terms. However, only certain sectors - notably financial services and construction - pay bonuses.
Tuesday’s ONS data also showed no let up in the job market squeeze with the number of job vacancies in March to May rising to a new record of 1.3 million.
The unemployment rate for February to April fell by 0.2 percentage points to 3.8 per cent. Short term unemployment for up to six months but this was offset by decreases in those unemployed for over six months, with those unemployed for between 6 and 12 months at a record low.
The number of people on payrolls rose again in May by 90,000 to a new record of 29.6 million.
The UK employment rate increased by 0.2 percentage points to 75.6 per cent but is still below pre pandemic levels. The number of full-time employees increased over the quarter to a record high however, this was partially offset by a decrease in the number of part-time employees.
Chancellor Rishi Sunak said:” Today’s stats show our jobs market remains robust with redundancies at an all time low.
“Helping people into work is the best way to support families in the long term, and we are continuing to support people into new and better jobs.
“We are also providing immediate help with rising prices - 8 million of the most vulnerable families will receive at least £1,200 of direct payments this year, with all families receiving £400.”
