Real pay continues to decrease despite another drop in unemployment, official figures have shown.
The latest Labour Force Survey from the Office for National Statistics (ONS), released today (14 June), found that growth in UK employees' average total pay including bonuses reached 6.8 per cent in the period February to April 2022, while growth in regular pay (excluding bonuses) reached 4.2 per cent .
However, adjusted for inflation, pay including bonuses grew just 0.4 per cent, with regular pay falling 2.2 per cent.
Employers ‘running out of steam’ on pay rises as talent shortages continue, CIPD finds
Despite some of the highest nominal pay rises in recent history, Jonathan Boys, labour market economist for the CIPD, said inflation was eroding these gains, and disproportionately affecting some workers more than others.
“Whether pay is beating inflation – resulting in a real pay rise – depends on who you are, and often whether you are paid a bonus or not. Total pay in the private sector rose by 8 per cent compared to just 1.5 per cent in the public sector,” he said.
Echoing this, Joanne Frew, global deputy head of employment and pensions at DWF, said with retention and recruitment difficulties continuing, employers are having to think of new and innovative ways to attract the best talent beyond the traditional route of increasing pay.
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