UK workers’ real pay suffers largest fall in nine years
UK workers suffered the biggest drop in their real pay since 2013, according to the latest figures from the Office for National Statistics (ONS).
The ONS revealed that regular pay, excluding bonuses, plummeted by 1.8% in the three months to February when taking rising inflation into account. According to the Consumer Price Index this is the steepest drop since August to October 2013.
The ONS said real pay was now “falling noticeably”, with figures for February indicating regular wages dropped 2.1% after inflation.
When compared with Consumer Prices Index including owner occupiers’ housing costs (CPIH), real regular wages fell 1% in the three months to February.
Despite pay rising by 4% in the quarter, this was majorly outstripped by inflation and experts have warned wages will be held back even further behind rising prices this year as inflation is expected to soar in the autumn.
Yesterday, Scottish Financial News reported that the employment rate remains unchanged on the quarter, while the unemployment rate decreased. While over the same period, the economic inactivity rate has increased slightly.
The UK employment rate was largely unchanged on the quarter at 75.5%, but still below pre-coronavirus pandemic levels.