Inflation increasing faster then record wage rises

Wages are still far behind the skyrocketing cost of living, even though they are increasing at the fastest rate in the last 20 years.

The fastest gain in regular pay since 2000, excluding the pandemic when workers received significant raises upon returning to work from furlough, occurred in the year to September, when it increased by 5.7%. But after accounting for price increases, salaries decreased by 2.7%. 

Living expenses are already growing more quickly than they have in over 40 years, partly as a result of the conflict in Ukraine. 

The cost of food and energy has skyrocketed, making it difficult for many individuals to pay their obligations. The 2.2% public sector wage increase lags well behind the 6.6% private sector pay increase and will exacerbate already brewing industrial tensions, which have already resulted in nurses voting to strike for the first time ever. Unions that represent employees in the public sector will take advantage of the record gap that exists now. 

While still strong, the number of openings decreased for the fourth consecutive month, suggesting that businesses are reducing their recruiting plans as they grow more pessimistic about the future of the economy. 

The fact that the size of the prospective workforce is decreasing, however, is what economists find to be the most perplexing.The number of over-50s who are unwilling or too ill to work continues to rise despite the increasing economic pressures on household incomes. Some have left the country following Brexit, while many are choosing to stay in education.

By Zac Gold