UK Earnings Growth Cools But Remains Elevated
12 Mar 2024
12 Mar 2024 by Luke Puplett - Founder
The latest figures from the Office for National Statistics show earnings growth in the UK is moderating but still running at an elevated level.
For the three months to January 2024, annual growth in regular earnings (excluding bonuses) across the whole economy was 6.1%. While still relatively high by historical standards, this is down from the recent peak of 7.3% reached last summer.
Total earnings growth, including bonuses, came in at 5.6% for the November 2023 to January 2024 period.
After adjusting for inflation, real regular pay grew by 1.8% annually, while real total pay was up 1.4%. This means wages are now growing faster than prices again after a prolonged squeeze on living standards.
At the sector level, private sector regular earnings rose 6.1%, marginally outpacing 5.9% growth in the public sector. The wholesaling, retailing, hotels and restaurants industry saw the highest regular pay growth of 7.2%.
The ONS noted that looking at the latest three months compared to the prior three months and annualizing, nominal regular earnings grew by just 3.5%. This suggests a clear slowing in pay pressures compared to the annual figures.
While still running hot, the moderation in earnings growth from recent highs will be welcomed by policymakers battling to bring inflation back under control. However, labor market data continues to point to an tight jobs market keeping upward pressure on wages.
Read the full report on the ONS:
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