UK: High inflation casts shadow on fastest rise in wages in 20 years

London, United Kingdom

In a sigh of relief for millions of British people and citizens in the rest of the United Kingdom, wages in the UK are rising at fastest in 20 years. However, it still lags behind the rate of rising cost of living.

The job vacancies in the UK are at record high whereas the unemployment is low. The employers are reportedly putting up more wages to brings the workers they need. In September, the wage growth was witnessed more in the private sector (6.6 per cent) as compared to the public sector (2.2 per cent). Except for the period of Covid-19 pandemic, this is the largest difference between public and private pay growths.

Regular pay rose by 5.7 per cent in the year to September, the fastest growth since 2000 except for the period of Covid-19 pandemic. When adjusted for the increased prices, the wages fell by 2.7 per cent.

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The cost of living crisis is putting 'more and more pressure on households', reports say. Energy and food prices have increased due to which millions in the UK are reportedly struggling to pay bills.

Unemployment slightly up, may double by 2025

The UK unemployment rate rose slightly to 3.6 per cent in the three months to September, up from 3.5 per cent in August, according to the official figures. The unemployment is likely to double by 2025, the Bank of England has warned.

Jeremy Hunt to announce measures on November 17

On Thursday, the Chancellor of Exchequer Jeremy Hunt will lay out his plans to revamp the British economy, with expected spending cuts and increase in taxes.

According to a report in The Times, Jeremy Hunt and UK Prime Minister Rishi Sunak will announce increase in the national living wage on Thursday, November 17. This increase will target the new cost-of-living payments for the poorest households.

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"People's hard-earned money isn't going as far as it should," Jeremy Hunt said. 

"Tackling inflation is my absolute priority and that guides the difficult decisions on tax and spending we will make on Thursday," he added.

UK paying for "economic mistakes" of Conservatives: Opposition

Labour Party's Rachel Reeves said that the UK was paying for "12 years of Tory economic mistakes".

"Real wages have fallen again, thousands of over-50s have left the labour market and a record number of people are out of work because they're stuck on NHS waiting lists or they're not getting proper employment support," Rachel Reeves said.

On Twitter, the Labour leader claimed that thousands of over 50s have left the labour market and record numbers are out of work as they’re on NHS waiting lists. "Britain deserves fairer choices and a proper plan for growth," she said. 

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