You are here: Home - Household Bills - News -

UK wages growing at fastest rate in 11 years

Written by:
UK wages grew at the fastest pace in over a decade in the year to May, according to the Office for National Statistics (ONS).

Regular pay excluding bonuses grew by 3.6 per cent, while total pay, which takes bonuses into account, increased by 3.4 per cent.

In real terms, after adjusting for inflation, regular pay was up 1.7 per cent and total pay up 1.4 per cent.

Matt Hughes, deputy head of labour market statistics at the ONS, said: “Regular pay is growing at its fastest for nearly eleven years in cash terms, and its quickest for over three years after taking account of inflation.”

Pay increases for some NHS staff and the introduction of the new National Living Wage and National Minimum Wage contributed to the growth.

However, earnings are still lower than before the 2008 financial crisis when.

In real terms, employees took home £468 a week on average at the end of May, £5 lower than the pre-recession peak of £473 per week for April 2008.

Unemployment stable

Meanwhile, the unemployment rate – the number of people actively seeking work – held steady at a record low of 3.8 per cent.

There were 32.75 million people aged 16 and over in employment at the end of May, 354,000 more than for a year earlier.

The increase was mainly as a result of more people working full time (up 247,000 on the year to reach 24.09 million).

Part-time working also showed an increase of 107,000 on the year to reach 8.66 million.

The number of self-employed part-time workers passed 1.5 million for the first time, well over double what it was 25 years ago.

Hughes said: “The labour market continues to be strong, with the employment rate still at a near-record high an unemployment down again.”


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week