Latest estimates from the Office for National Statistics showed that, despite average weekly earnings increasing by 2.1%, when adjusted for price inflation, weekly earnings actually fell by 0.4% compared with a year earlier.
The Labour Force Survey revealed that average regular weekly pay, excluding bonuses, stands at £474 before tax and other deductions, up from £465 last year. When bonuses are included, average total weekly pay rises to £505 a week, up from £498 a week a year earlier.
Although real wages are failing to keep pace with price inflation, the figures show that, between February to April 2017 and May to July 2017, the number of people in work increased to more than 32 million. This brought the employment rate (the proportion of people aged 16 to 64 in employment) up to 75.3%, the highest it has been since comparable records began in 1971.
In addition, the number of unemployed people fell from 4.9% to 4.3% and the number of people aged 16 to 64 not working and not seeking or available to work (economically inactive) also fell from 21.6% to 21.2%.
