UK wages are rising more quickly than predicted

UK wages are rising more quickly than predicted

The latest data on wage growth shows that in the three months from February to April wages rose faster than previously indicated.

During this period pay rose by 3.4 per cent compared to the same period 12 months ago, which after taking inflation into account, means that the average UK wage grew by 1.4 per cent.

In fact, April was the 15th month running that wages growth has outpaced inflation.

The figures from the Office for National Statistics (ONS) also show that unemployment rate remained at 3.8 per cent, with the employment rate for women hitting a historic high of 72 per cent.

The UK’s rate of employment has not been lower since the final quarter of 1974. The changes to state pension age for women from 60 to 65 is thought to have had a significant impact on this rate.

Matt Hughes, deputy head of labour market statistics at the ONS, said: “With employment growth among women coming from full-timers, the overall gap between men and women in hours worked is now the lowest ever – women now average about three-quarters of men’s weekly hours, compared with around two-thirds 25 years ago.”

Employment Minister Alok Sharma said: “Once again we see more people in work than ever before; 3.7 million more since 2010. A testament to the Government’s support for employers and jobseekers on a day where we also mark that 2 million claimants are now being supported through Universal Credit.

“With wage growth increasing pace on last month, outstripping inflation for the 15th month in a row, and record high female employment – the government’s focus on pro-business policies and balanced economic management is delivering opportunity for all.

“As we celebrate the UK’s powerhouse digital sector in London Tech Week, we also see almost 100,000 more people in digital jobs in the last year alone.”

The latest employment figures are very promising for the UK economy, but a rise in the average wage may mean an increase in employment costs. Let us help you manage the cost of your payroll with our specialist support. Contact us today to see how we can help.

Posted in Payroll, Right.