Wage growth in the UK has outpaced the rate of inflation, while the unemployment and economic inactivity rates have increased.
Growth in average total pay, which includes bonuses, was 8.5 percent, a 0.3 percent increase on the rate, published in August.
This may be seen as positive statistics for the economy, but for Britons, faced with the cost-of-living crisis and higher energy bills in the coming winter months, it may not represent an actual financial relief.
Surges in energy prices drive the food costs and the overall CPI up. While food and energy costs were the main drivers of a cooling in CPI between June and July, this is likely to change in the upcoming colder months.
“Good news today, wage growth is higher than inflation for the first time since March 2022. But the only way we can keep real wages rising sustainably is by halving inflation this year, we must stick to the plan,” Mr. Hunt said.
In January, Mr. Sunak pledged to halve inflation this year to give Britons financial security. The government’s opposition, however, has not been in a rush to praise Downing Street for its efforts in tackling high inflation.
Drop in Employment
The ONS reported a decrease in employment rate by 0.5 percent, compared to the previous quarter. On the other hand, the unemployment and economic inactivity rates have increased.
The unemployment figure was estimated at 4.3 percent, which is 0.3 percent higher than before the coronavirus pandemic.
In turn, economic inactivity, which includes people who are not in paid work, but also not looking for a job, stood at 21.1 percent. This is 0.9 percent higher than the pre-pandemic level.
However, he made no mention of the fact that there were more unemployed people in the UK, than in the last quarter.
TUC General Secretary Paul Nowak said that while average pay has finally outstripped inflation, real wages across the public sector, retail, hospitality and construction were still falling