Pay for employees in Britain has fallen in actual phrases for the primary time in additional than a yr, regardless of indicators that employers shrugged off issues over the Omicron coronavirus variant to proceed hiring in December.
Common wages, after taking account of inflation, dropped in November for the primary time since July 2020 amid rising issues over the hit to residing requirements this yr from excessive inflation and surging power payments.
The Office for National Statistics mentioned though common complete earnings grew at an annual charge of 4.2% in November, the influence from hovering charges of inflation meant employees suffered a 0.9% real-terms reduce of their pay packets. The official charge of inflation reached a 10-year high of 5.1% in November.
The variety of workers on UK firm payrolls rose by 184,000 on the month to 29.5 million, a rise of 409,000 on pre-pandemic ranges as the roles market continues to get well from Covid-19.
Reflecting employees shortages throughout the economic system, the variety of job vacancies rose for many industries over the three months to December to a report 1.2 million regardless of a slowdown within the charge of progress in latest months.
Frances O’Grady, the final secretary of the TUC, mentioned: “Whereas it’s good to see employment persevering with to rise, on pay it’s the identical story of a squeeze on employees.
“Working individuals deserve an honest way of life and a wage they’ll elevate a household on. However as an alternative, following the more serious pay squeeze for 2 centuries, actual pay is falling, and so they now face a cost-of-living disaster.”
Official figures for the three months to November confirmed the unemployment charge continued to fall, dropping to 4.1%, near the place it was earlier than the pandemic started in spring 2020.
The redundancy charge, which measures the variety of individuals being made redundant for every 1,000 workers, dropped to the bottom degree on information relationship again greater than 1 / 4 of century regardless of the federal government eradicating the furlough scheme on the finish of September.
The chancellor, Rishi Sunak, mentioned the most recent figures have been “proof that the roles market is flourishing”.
“From traineeships for younger individuals to sector based mostly work academies for these switching careers, our plan for jobs is constant to create alternative for all,” he mentioned.