Wed, 8 December 2021

Newsletter sign-up

Subscribe now
The House Live All
Economy
HFSS ad ban: ‘Pro-Tech’ Government Dismissing Tech Solutions Partner content
By IAB UK
Economy
Commitment to child protection shows the betting and gaming industry’s determination to raise standards Partner content
Education
Economy
For trade deals to succeed the government must put consumers first Partner content
Economy
Press releases

UK wages stagnant despite record high employment, new figures show

UK wages stagnant despite record high employment, new figures show
2 min read

Real term wages are still lower than they were before the financial crisis despite record high employment, new figures show.


The UK employment rate now sits at 76.2% - a new record high but only a 0.1% increase from the start of 2019, according to Office for National Statistics (ONS) figures.

Meanwhile, average weekly pay in the year to October 2019 was 4.3% less than the pre-downturn peak of peak of £525 in February 2008, when taking inflation into account.

The modest figures come after the UK narrowly avoided a recession last month, recording the country’s slowest growth in a decade. Vacancies have also fallen yet again, dropping below 800,000 for the first time in two years.

Other positive news includes a record low employment rate for women, as well as youth unemployment falling by 50% over the last decade.

Pay is still increasing in real terms, but this growth has slowed in recent months partly due to economic uncertainty surrounding Brexit, ONS analysis suggests.

Nye Cominetti, economic analyst at the Resolution Foundation, said the rising pay and low unemployment figures would “be welcome news to the new government”.

But, he added: “The UK’s slowing economy has started to hit workers’ pay, reminding us that the labour market cannot be divorced from wider developments. “Remarkably, British workers are reaching the end of the decade with their pay packets stretching no further than they did at the end of the last decade.”

However, Sajid Javid, Chancellor of the Exchequer, was positive about the ONS’s findings.

He said: “There’s talent up and down this country – three quarters of employment growth in the last year has been outside London and the South East. “I’m looking forward to getting Brexit done and unleashing Britain’s potential, levelling up opportunity across the country.”

PoliticsHome Newsletters

PoliticsHome provides the most comprehensive coverage of UK politics anywhere on the web, offering high quality original reporting and analysis: Subscribe

Read the most recent article written by Eleanor Langford - MPs Say It's “Absolute Nonsense” To Say Tories Are Worried About Bexley By-Election

Tags

Employment

Categories

Economy
Podcast
Engineering a Better World

Can technology deliver a better society? In a new podcast series from the heart of Westminster, The House magazine and the IET discuss with parliamentarians and industry experts how technology and engineering can provide policy solutions to our changing world.

New episode - Listen now