Connect with us

Hi, what are you looking for?

Business

Pay continues to grow in UK but faces pressure

Average UK pay rose by 5.9%, official data suggests, while vacancies fell to their lowest since before Covid.

Wage growth is slightly ahead of the previous period and was lifted by the public sector, according to Liz McKeown, director of economic statistics at the Office for National Statistics which published the figures.

But some economists warned that salaries will come under pressure after increases to the amount of National Insurance employers pay came into force this month at the same time as rises to the National Minimum Wage.

Meanwhile, the number of jobs on offer dropped to 781,000 in the first three months of the year, falling below pre-pandemic levels in 2020.

Yael Selfin, chief economist at KPMG UK, said: “The short-term impact of the rise in labour costs which came into effect in April, will likely put downward pressure on pay over the coming months.”

The ONS said the UK unemployment rate remained at 4.4%, roughly the same as the previous three months.

The employment rate for people aged 16 to 64 years was 75.1%, still below Labour’s target of 80% employment.

The ONS said its jobs figures should be treated with caution because of low response rates to its employment survey, on which the figures are based.

You May Also Like

Europe

On 1 May this year Belgian journalist Roland Delacore wrote a personal opinion piece about the Church of Almighty God, which was published in...

Europe

Aigul Kuspan, the ambassador of Kazakhstan to the Kingdom of Belgium and head of mission of the Republic of Kazakhstan to the European Union,...

General

The European Union has formally announced it suspects X, previously known as Twitter, of breaching its rules in areas including countering illegal content and...

Europe

This editorial was published in Welt am Sonntag on 11 July 2020. As a young prosecutor, I used to wonder why white-collar criminals would...