UK wage rates increased in the summer

September 11, 2018 12:55 pm0 commentsViews: 7

UK wageThe UK wage rates increased in the summer, which could help the country’s economic growth amid the uncertainty surrounding Brexit. Britain’s National Statistics Office said on Tuesday that average earnings excluding bonuses increased by 2.9% for the three months to July compared to the same period last year, reaching 489 GBP per week.

The total pay for UK workers with bonuses increased by 2.6% to 520 GBP per week for the three months to July on an annual basis. For comparison, an increase of 2.4% was recorded in the previous three months.

A rise in wages was observed both in the public sector (2.4% vs 2.2% in the first quarter) and in the private sector (2.6% vs 2.4%).

In real terms, earnings, including bonuses, are up by 0.2%, and bonuses are down by 0.5% on an annual basis, as wages rise faster than prices. However, the real wages remain below their pre-crisis levels.

In July, the annual inflation rate stood at 2.5%.

Improving the standard of living is a potential advantage that stimulates growth against the backdrop of the great uncertainty surrounding the UK’s exit from the EU in March 2019.

Meanwhile, other data showed that unemployment in the UK remained unchanged at 4%, which is 43-year bottom. The number of unemployed in the country decreased by 55,000 for the period May-July compared to February-April.

The number of job vacancies has increased by 14,000 to the historic record of 833,000 for the three months to August mostly due to the increase in vacancies in the healthcare, social, administrative and other sectors.

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