Wage growth slows to lowest rate in two years, as unemployment also falls
13 August 2024, 07:47
Wage growth has slowed to its lowest rate in two years, according to figures released on Tuesday morning.
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UK average regular earnings growth dropped to 5.4% in the three months to June, down from 5.8% for the previous three months. This was the lowest increase since May to July 2022, when it hit 5.2%.
But the Office for National Statistics maintained that pay growth was still "relatively strong", as wages continued to rise above inflation.
Meanwhile unemployment dipped slightly to 4.2% in the three-month period to the end of June, which was down from 4.4% previously.
This was a surprise, as some economists had predicted the joblessness rate to increase.
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Rachel Reeves said the figures showed there was "more to do in supporting people into employment"
The Chancellor added: "Today's figures show there is more to do in supporting people into employment because if you can work, you should work.
"This will be part of my Budget later in the year where I will be making difficult decisions on spending, welfare and tax to fix the foundations of our economy so we can rebuild Britain and make every part of our country better-off."
Meanwhile the Work and Pensions Secretary described the data as "yet more evidence of the dire inheritance we face".
Liz Kendall said: "This is yet more evidence of the dire inheritance we face, with millions of people denied the support they need to get work and get on at work, harming their opportunities and holding back growth.
"This government will deliver the change the country is crying out for by making work pay, transforming skills, overhauling jobcentres and giving local areas the power they need to drive jobs and growth."
