Many Britons face a pay cut in real terms due to inflation.
The Office for National Statistics (ONS) published official data today showing that pay increased by 4.2 percent in the three months to April, excluding bonuses.
However, inflation is currently at 9% and is expected to rise further, putting additional strain on people’s finances.
In real terms, wages are down 2.2 percent from last year, according to the ONS.
Even if your wages increase, if they don’t keep up with retail prices, you’ll be spending more of your income on necessities like food and gas, putting a strain on your finances.
“The high level of bonuses continues,” said Sam Beckett, head of economic statistics at the ONS.
The ONS reported last month that the average wage increased by 4.2 percent while inflation was at 7 percent.
According to the most recent wage data, unemployment is at its lowest in nearly 50 years, and job vacancies have reached a record 1.3 million.
“Today’s figures continue to show a mixed picture for the labour market,” Beckett said.
While the number of people working increased in the three months to April, it remained below pre-pandemic levels.”
Furthermore, while the number of people who are neither working nor looking for work has decreased slightly in the most recent period, it is still significantly higher than it was before Covid-19.
“At the same time, unemployment is approaching a 50-year low, and there was a record low number of layoffs.” Job openings are also slowly increasing. At a new high of 1.3 million, this is more than half a million more than before the pandemic began.”
What do the most recent unemployment figures mean for your financial situation?
A tight labour market with high employment and a large number of job openings indicates that it is a good time to look for a new job.
In some areas, a lack of workers has pushed up wages, with some jobs, such as chefs and bouncers, seeing wage increases that are higher than inflation.
Hundreds of thousands of workers will benefit from a pay increase beginning next month.
