Tue, 21 Jan 2025

Pay after inflation rises at fastest rate since 2021

Wage growth increased by 3.4% after taking into account inflation, driven by strong increases in the private sector.

* UK pay after inflation has risen at its fastest rate in over three years, with a 3.4% increase between September and November.
* Strong wage growth in the private sector is driving this rise, outpacing public sector earnings.
* Despite concerns that rising wages could push up inflation, the Bank of England is still expected to cut interest rates next month.
* Average weekly earnings in the UK hit £660 in November, with an inflation rate of 2.5%.
* Economists and experts suggest that a rate cut is likely, but warn that rising wages could lead to higher inflation and delayed rate cuts.
* The UK's unemployment rate has ticked up to 4.4%, while vacancies have dropped by 2.9% to 812,000.
* Businesses are offering high rates of pay for employees with specific skills in areas such as engineering and IT.
* Economists suggest that employment may be slowing down due to tax rises and business costs.
* There is a risk that businesses facing higher costs will cut back on staff and wage rises.
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