Wages are now outpacing inflation, while the employment rate is at an all-time high, according to figures from the Office for National Statistics (ONS).
The latest estimates from the Labour Force Survey showed that, between September to November 2017 and December 2017 to February 2018, average weekly earnings in real terms (adjusted for price inflation) increased by 0.2 per cent excluding bonuses, and by 0.1 per cent including bonuses, compared with a year earlier.
Ben Brettell, Senior Economist at Hargreaves Lansdown, said: “Wages are growing at their fastest rate in nearly three years, the ONS confirmed.”
“Pay grew 2.8 per cent in the three months to February. The squeeze on incomes isn’t quite over, as prices rose at an annual rate of 2.9 per cent during that period. But with inflation currently running at 2.7 per cent, and expected to fall towards 2 per cent this year, it looks certain we’ll see real wages start to grow again in the coming months,” said Brettell.
The figures also revealed that 427,000 more people have moved into employment in the past year, with 32.26 million now in work.
The Secretary of State for Work and Pensions, Esther McVey, commented: “That means on average, over 1,000 people have moved into work every day since 2010, and credit has to be given to the businesses who have created those jobs and the individuals who are taking those opportunities.”
