The Office for National Statistics said average weekly earnings rose by 2.5% on the year in the three months to May, slowing down from the previous three months when they grew by 2.6%. Pay growth excluding bonuses also slowed by a similar amount to 2.7%. The disappointing figures for pay growth came despite unemployment remaining at 4.2%, which was the joint lowest level since May 1975. While lower numbers of people out of work should help workers demand higher pay, some economists say the creation of low-paid and precarious jobs since the financial crisis has damaged the link between low levels of unemployment and wage growth.
UK wage growth slides to lowest rate in six months
- Tuesday, Jul 17 2018
The rate of pay growth for British workers has fallen to the lowest level in six months, despite record numbers of people in work across the country, official figures show. Heaping renewed pressure on the Bank of England to delay raising interest rates from as early as August, the latest snapshot for the British labour market showed workers are still unable to demand higher pay despite the lowest unemployment levels since the mid-1970s. High rates of employment and low levels of unemployment usually signal rising wages.