Millions of workers have seen a “real” salary decrease.
The number of people on the payroll increased by 121,000 to 29.5 million between March and April, according to the Office for National Statistics.
According to the most recent numbers, unemployment has dropped to 3.7 percent, the lowest level since 1974.
However, due to the cost of living crisis, workers’ pay packets will not stretch as far as they once did, as they deal with growing expenses, skyrocketing store costs, and other issues.
Workers are having their living standards eroded by inflation.
While the average wage increased by 4.2 percent, inflation, which is currently at 7%, exceeded it.
It means that workers’ earnings are falling in “real terms” because retail prices are rising at a slower rate.
As the cost of living problem continues, the Bank of England has warned that inflation could exceed 10% this year.
“With inflation anticipated to top 9% when the April data are revealed on Wednesday, the stress on budgets will only get tighter,” said Alice Haine, personal finance analyst at Bestinvest.
“By the end of the year, the Bank of England forecasts double-digit inflation – levels not seen in four decades – and pay growth could continue to lag behind growing prices for several months.”
The ongoing conflict in Ukraine is being blamed in part for the recent record-breaking highs in oil prices.
It’s also had an impact in stores, with wheat and oil shortages leading to empty shelves and higher pricing.
“Our domestic labor market is improving nicely,” stated Mims Davies, MP, “with payroll numbers expanding once again and vacancies continuing robust.”
We do, however, recognize the impact of global inflationary pressures on the cost of living for families, which is why we’re taking steps to assist the poorest.
“Our Work Coaches assist people at our Jobcentres on a daily basis in their efforts to find job; those who find full-time work might be £6,000 better off than those on benefits.”
According to the administration, a fresh drive has been begun to enroll more people on payrolls around the country.
So far, 280,000 people have found work as a result of its Way to Work campaign.
