UK wages fall at fastest rate on record

It has been announced that UK wages have fallen at the fastest rate on record, prompting more concern over how households are going to manoeuvre the “cost of living crisis” which is set to impact is all.

As rocketing inflation continues to spark hysteria and major concern, this is the news that no one wanted, and this latest news has certainly ramped up pressure on the government to act.

Official data released in the media has revealed that: “Regular wages, excluding bonuses, plunged an average of 4.1% on the year in the three months to June when inflation is taken into account, according to the Office for National Statistics (ONS).”

This is the highest fall since records began more than two decades ago and of course, comes at a time when the rate of consumer price index (CPI) inflation hit a 40-year record of 9.4% in June! This is set to increase to a further 11% later in the year.

 

But what does this mean for employment in the UK?

This latest data also indicates that there is set to be a slowdown in hiring demand, with

growth in employment slowing to 160,000 in the three months to June.  This is despite job vacancies being at a record high.

Ruth Gregory, a senior UK economist at the consultancy Capital Economics has been quoted in the media stating: “June’s labour market figures revealed further evidence that the weaker economy is leading to a slightly less tight labour market.”

This has forced a number of pleas from the public for the Government to step in to support those hardest hit, as well as an increased pressure on the government and Conservative leadership candidates to respond to the cost-of-living crisis.

The chancellor, Nadhim Zahawi stated in the press: “Although there are no easy solutions to the cost-of-living pressures people are facing, we are providing help where we can. We are delivering a £37bn package of help for households through cash grants and tax cuts so people can keep more of what they earn.”

The next 6 month look incredibly challenging for many, as we all prepare for a cost-of-living crisis that is set to take no prisoners.

 

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