Wage growth accelerates faster than expected

  • September 11, 2018

Wages saw faster than expected growth in the three months to July, as they continued to outstrip rising prices.

Excluding bonuses, wages grew by 2.9%, according to figures from the Office for National Statistics (ONS), well above the 2.4% inflation rate for the three-month period.

Analysts had forecast a 2.8% rise.

Unemployment continued to fall, dropping by 55,000 to 1.36 million. The unemployment rate remains at its lowest level for over 40 years.

The number of people in work rose by 3,000, taking the total employment level to 32.397 million.

The ONS's head of labour market statistics David Freeman said: "With the number of people in work little changed, employment growth has weakened. However, the labour market remains robust, with the number of people working still at historically high levels, unemployment down on the year and a record number of vacancies.

"Meanwhile, earnings have grown faster than prices for several months, especially looking at pay excluding bonuses."

However, the availability of both permanent and temporary candidates have continued to decline, according to the latest REC Report on Jobs.

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