Tue, 18 Feb 2025

Tue, 18 Feb 2025 UK wages continue to outpace inflation

Pay outstripped price rises by 3.4% between October and December while the unemployment rate remains unchanged.

* Average wages increased by 3.4% between October and December compared to the same period a year ago, outpacing inflation.
* The UK's unemployment rate remained unchanged at 4.4%.
* Public sector pay growth was 4.7%, while private sector pay growth was 6.2%.
* Without accounting for inflation, annual pay growth excluding bonuses was 5.9%, up from 5.6% previously.
* The UK's inflation rate was 2.5% in the year to December.
* Economists predict a "steady downward trend" in pay growth in the coming months.
* Businesses are planning to cut workforces and raise prices ahead of higher employment costs in April, including increased National Insurance payments.
* Total estimated vacancies were down by 110,000 (11.8%) from a year ago.
* The number of UK workers on payrolls rose by 21,000 during January to 30.4 million.
* Companies' confidence falls as they face increases to National Insurance payments and wages.
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