“Just in time for Christmas, jobseekers and employees are beginning to see UK wages pick up speed. Average weekly earnings for employees increasing by 2.2% shows the tide is turning on salaries. In keeping with a low unemployment and steady inflation rate, there is festive cheer being spread among the labour market as pay rises have become a priority to boost productivity and staff morale. Christmas has come early for train drivers in particular, following reports they have agreed a 28% pay rise to end Southern Rail strikes.
“We hope to see this ripple effect spread throughout the labour market as strong demand for fairer pay packages mounts, following Living Wage Week recently. With rising food prices still lagging behind salaries, household incomes will continue to be squeezed at present, but we hope to see the gap shrink in the coming year.”
UK labour market: November 2017
- Estimates from the Labour Force Survey show that, between April to June 2017 and July to September 2017, the number of people in work fell slightly, the number of unemployed people also fell, and the number of people aged from 16 to 64 not working and not seeking or available to work (economically inactive) increased.
- There were 32.06 million people in work, 14,000 fewer than for April to June 2017 but 279,000 more than for a year earlier.
- The employment rate (the proportion of people aged from 16 to 64 who were in work) was 75.0%, down slightly compared with April to June 2017 but up from 74.4% for a year earlier.
- There were 1.42 million unemployed people (people not in work but seeking and available to work), 59,000 fewer than for April to June 2017 and 182,000 fewer than for a year earlier.
- The unemployment rate (the proportion of those in work plus those unemployed, that were unemployed) was 4.3%, down from 4.8% for a year earlier and the joint lowest since 1975.
- There were 8.88 million people aged from 16 to 64 who were economically inactive (not working and not seeking or available to work), 117,000 more than for April to June 2017 but 20,000 fewer than for a year earlier.
- The inactivity rate (the proportion of people aged from 16 to 64 who were economically inactive) was 21.6%, higher than for April to June 2017 (21.3%) but down slightly from a year earlier.
- Latest estimates show that average weekly earnings for employees in Great Britain in nominal terms (that is, not adjusted for price inflation) increased by 2.2% both including and excluding bonuses, compared with a year earlier.
