The Office for National Statistics (ONS) have said that wages have continued to rise at a record pace and for the first time in two years they have not been outstripped by inflation.
In the three months to July weekly earnings growth remains at a high of 7.8% which has matched the Consumer Prices Index (CPI) inflation for the first time since October 2021.
Bonuses and pay has risen by 8.5% which means that for the first time since March 2022, which is up 0.6% with CPI taken into account.
In almost two years unemployment rose to its highest level and in the three months to July it is at 4.3%, up from 4.2% compared to the previous three months.
Darren Morgan, ONS director of economic statistics, said: “Earnings in cash terms continue to increase at a record rate outside the pandemic-affected period.
“Coupled with lower inflation, this means people’s real pay is no longer falling.
“Unemployment continues to increase in the latest three months. Correspondingly, employment is down, driven by falls among men and the self-employed.
“The proportion of people neither working nor looking for a job is slightly up, with more students, as well as the long-term sick reaching yet another record.”
Chancellor Jeremy Hunt said: “It’s heartening to see the number of employees on payroll is still close to record highs and that our unemployment rate remains below many of our international peers.
“Wage growth remains high, partly reflecting one-off payments to public sector workers, but for real wages to grow sustainably we must stick to our plan to halve inflation.”