The unemployment rate remains unchanged, and the wage growth rate has also slowed down. These factors can influence the Bank of England’s approach to the interest rate.
The Office for National Statistics (ONS) said that the average weekly pay increase, which does not include bonuses, dipped to 6.6% in the three months leading up to November from 7.3% in the previous month.
In simple terms, pay packet growth outpaced the rate of price increases, which, until November, had been at a low of 3.9% for more than two years. Pay increased by 6.5% when bonuses were taken into account.
Due to a reduction in health sector industrial action, some NHS walkouts ceased, and consultants agreed to a new pay contract. November also had the fewest strike days in 18 months.
At 4.2%, the jobless rate likewise held steady, remaining historically low. Reuters-surveyed economists anticipate a modest increase, to 4.3%.
Wages had been growing at a record rate due to low unemployment and a significant number of open positions.
The Bank of England’s policymakers will take note of the slower wage growth that was disclosed on Tuesday.
Governor Andrew Bailey had labeled summer pay increases as “unsustainable,” thus the regulator had been raising interest rates to combat inflation.
The number of open positions fell to 934,000 as companies decreased their hiring pace. The number of vacancies contracted for the 18th time in a row, which is the longest run of consecutive quarterly declines, although it was still higher than pre-COVID-19 pandemic levels.
The ONS found it more difficult to interact with enough members of some groups, so late last year it used a new method of crunching labor market statistics in an attempt to assure greater accuracy.
Changes in payroll employee data are used to track changes in earnings, and the number of people claiming unemployment benefits is used to determine unemployment.
Chancellor Jeremy Hunt stated while acknowledging the ONS figures, “It has been tough for many families recently, but with inflation now falling and the economy gradually returning to growth, today’s continuing rise in real wages will offer further relief.”
“On top of this, the cut in National Insurance contributions will get more people back into the jobs market, not just supporting economic growth but saving a typical two-earner household around £1,000 this year.”
- Published By Team Timeswire