Wages rise at fastest pace for decade

Wages are continuing to rise at their highest level for nearly a decade as Brexit nears, official Office for National Statistics figures show.

Average weekly earnings, excluding bonuses, went up by 3.3% in the three months to October, the biggest rise since November 2008.

It follows a 3.2% rise in wages last month compared with the previous year.

The number of people in work rose by 79,000 to a record high of 32.48 million in the period.

That is the highest figure since records began in 1971.

Unemployment also increased by 20,000 to 1.38 million, although the total is still lower than a year ago.

The reason both employment and unemployment have increased is a result of the UK’s rising population and more people joining the labour force, such as students and older people.

“The employment rate has continued to rise in the most recent three months, returning to a joint record high, boosted by an increase in full-time workers,” said the ONS senior statistician Matt Hughes.

“There was a corresponding fall in the inactivity rate, while the unemployment rate was virtually unchanged.

“Real earnings are now growing faster than at any time since around the end of 2016.”

Employment Minister Alok Sharma said: “Today’s statistics show the enduring strength of our jobs market, with wages outpacing inflation for the ninth month in a row and employment at a record high.

“This is benefiting people across the country, with almost 400,000 more people in work in the last year, putting more money in the pockets of working families, and showing the UK remains a great place to invest and do business.”

Tej Parikh, senior economist at the Institute of Directors, said: “”The robust labour market continues to be an anchor for the British economy in a period of turbulence, but there is little room for complacency.

“The need to bolster skills is intensifying and the potential for even stronger wage growth remains tethered by weak productivity growth.”