Inflation Outpacing Wages by Biggest Margin in a Decade

The latest figures from the Office for National Statistics show real terms pay fell by 2.2% between February and April when adjusted for inflation, and even including bonuses it only rose by 0.4%. The fastest fall in ordinary pay since 2011… 

Job vacancies, meanwhile, have hit a record high of 1.3 million from March to May, with unemployment up slightly from last month at 3.8% and the employment rate at 75.6%. Still lower than the pre-pandemic high of 76.5%.

Reacting to the figures this morning, Rishi 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…”

Inflation is still expected to climb higher yet…

mdi-timer 14 June 2022 @ 08:59 14 Jun 2022 @ 08:59 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
UK Economy Grows Faster than Expected, Household Savings Drop

The UK economy grew at a faster rate than expected between October and December last year, at 1.3% compared to forecasts of 1% according to the Office for National Statistics. GDP is now just 0.1% below its pre-pandemic figure. All this despite the Omicron hysteria at the end of last year…

The rise is also a bounce back from the downwardly revised growth of 0.9% in Q3, with total yearly growth sitting at 7.4% in 2021. Household savings, meanwhile, are at their lowest point since the start of the pandemic, with the ratio at 6.8% by December. Just as inflation begins to bite…

ONS director of economic statistics Darren Morgan said:

“GDP grew a little stronger than we first thought in the fourth quarter, meaning it is now only 0.1 percent below its pre-pandemic level. Savings were at their lowest level since the start of the pandemic as household spending rose, mainly driven by rising prices.

House prices still continue to soar at their fastest rate since 2004, with the typical price now 21% higher than before the pandemic…

mdi-timer 31 March 2022 @ 09:00 31 Mar 2022 @ 09:00 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Unemployment Drops Below Pre-Pandemic Levels, Inflation Wipes Out Pay Rises

New figures from the ONS show unemployment fell to 3.9% between November and January, the lowest since January 2020, and again beyond economists’ expectations. That’s a fall of 0.2% from the last quarter of 2021, with 1.34 million people recorded as unemployed for the three months to January. And despite the wave of panic from Omicron…

Don’t get too happy: while job vacancies are at a record high, wages failed to keep up with the rapidly rising cost of living: salaries grew by 3.8%, while inflation pushed prices up by 5.5% in the same period. Don’t expect those numbers to improve soon.

Speaking this morning, ONS chief economist Grant Fitzner said:

“…the number of people out of work and not looking for a job rose again, meaning total employment remained well below its pre-pandemic level. We have seen yet another record number of job vacancies, and with the redundancy rate falling to a new record low, demand for workers remains strong.”

On wage growth, Fitzner added “The issue is not that pay growth is weak, it’s that prices are running even higher”…

mdi-timer 15 March 2022 @ 09:09 15 Mar 2022 @ 09:09 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
UK Borrows Less Than Forecast In December

New figures from the ONS show the UK borrowed £16.8 billion last month, with increased tax revenues and reduced spending helping to line the Treasury’s pockets as the economy continues to recover from the pandemic. That figure is £1.7 billion lower than the £18.5 billion predicted by economists, and £7.6 billion less than in December 2020…

Although interest payments lurched to £8.1 billion due to inflation, there’s clearly more wiggle room here to put off the impending National Insurance rises. On cue, however, Rishi Sunak appeared this morning to dismiss the idea:

“Risks to the public finances, including from inflation, make it even more important that we avoid burdening future generations with high debt repayments…”

Best to burden everyone with tax hikes during a cost of living crisis instead…

mdi-timer 25 January 2022 @ 08:53 25 Jan 2022 @ 08:53 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
UK Unemployment Drops to 4.8% in March

The UK jobless rate dipped to 4.8% from January to March – a drop from 5.1% in the previous quarter according to the Office for National Statistics. Hiring and payroll employment rates are also increasing, with the overall employment rising to 75.2%, though this is still 1.4% below pre-pandemic levels. Clearly some signs of recovery as the economy begins to reopen, although furlough has kept things from falling off a cliff-edge…

Young people continue to bear the brunt of the economic damage, with employment and unemployment rates for 16-24-year-olds decreasing over the last quarter; a result of their staying in education rather than looking for work. A surge in vacancies across retail and hospitality over the summer could help here…

The overall picture is less bleak than initially feared, though: vacancies are at their highest in 12 months, and the falling average in unemployment is encouraging. The real test comes when Rishi turns off the taps and furlough is wound down…

mdi-timer 18 May 2021 @ 08:46 18 May 2021 @ 08:46 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
Britain Seeing Fastest Wage Growth for a Decade

New ONS figures released today reveal that the UK saw the biggest rise in wages since December 2008, with pay up by 3.2% on last year, well ahead of inflation.  The unemployment rate is also down again, from 4.3% to 4.1%. All despite Brexit…

mdi-timer 13 November 2018 @ 14:25 13 Nov 2018 @ 14:25 mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-comment View Comments
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