You are here: Home - Household Bills - News -

Wages continue to grow as job vacancies fall

Written by:
Wage growth in the UK remains strong, but job creation has slowed, official figures show.

Total pay, including bonuses, increased by 4 per cent in the three months to July, while regular pay excluding bonuses grew by 3.8 per cent, slightly down from the previous period, according to the Office for National Statistics (ONS).

Employment remained at a record high, with figures showing 76.1 per cent of 16-64 year olds were in work – a joint record high.

However, the number of vacancies for June to August fell to around 812,000 in the UK, 23,000 fewer than for the previous quarter and 33,000 fewer than for the previous year.

David Freeman, head of labour market at the ONS, said: “Vacancies continue to fall back from recent record highs, with much of this decline coming from small businesses.”

The unemployment rate remained at 3.8 per cent, unchanged from the previous quarter.

Ed Monk, of Fidelity International, said: “We’ve now had a year of above 3 per cent wage growth, and crucially that pay has outstripped inflation since March 2018.

“That has to have a positive easing effect on household budgets even if it only makes up for ground lost from years of stagnant wages.

“Today’s headline growth figure of 3.8 per cent (excluding bonuses) is a little down on last month, when a one-off boost to public sector employees fell out of the year-on-year comparison, but it’s a further encouraging sign following evidence yesterday that GDP growth in July may have bounced after a negative second quarter of the year.

“The UK needed a bit of good news ahead of what promises to be a testing few months politically and economically.”

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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Parents on Universal Credit given more time to claim back childcare costs

Working parents on Universal Credit will have an extra month to claim back their childcare costs under new rules.