News

UK wages rising at fastest rate since October 2007

According to the Office of National Statistics, wage growth in the UK is picking up. Employment figures for April due later this week are expected to show the biggest rise in real wage growth for nearly eight years, according to new analysis.

Average weekly earnings growth is predicted to grow by an annual rate of between 2.5 per cent and 2.6 per cent between February and April 2015, compared to 2.2 per cent between January and March.

BBC News has reported that the ONS figures also showed that there were 30.80 million people in work in the three-month period, 115,000 more than for the May-to-July period, driven by more people in full-time work[1]

The Guardian has reported that the data will give George Osborne a post-election lift after a weak first few months of the year that have shown manufacturing output slide backwards and the biggest boost to growth come from the City and the hotel and restaurant sectors.

Meanwhile, the number of people unemployed in the quarter fell by 63,000 to 1.96 million. The fall was the slowest quarterly fall for a year, leading some analysts to speculate that the rate of improvement may have peaked.

[1] Business News, “Wage growth picks up as UK unemployment falls” http://www.bbc.co.uk