The unemployment rate fell and wages rose in the second quarter but inflation is wiping out those gains and then some, according to the Office o National Statistics…(ONS)
- The unemployment rate in Q2 increased by 0.1 percentage points to 3.8%
- Growth in regular pay was 4.7% while average total pay (including bonuses) was 5.1% in Q2.
Unfortunately, even though nominal wages are up about 5.0% real wages continue to fall. In Q2, regular pay fell by a record 3.0%.
- REMINDER: The Consumer Prices Index rose by 8.2% in July.
Ruth Gregory, a senior UK economist at the consultancy Capital Economics told the Guardian: “June’s labour market figures revealed further evidence that the weaker economy is leading to a slightly less tight labour market.”
