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Wage growth cools again as employment rises
Annual growth in total earnings, including bonuses, came in at 4.5% in the three months to June, government data showed.
The 4.5% annual figure for the April to June 2024 period is down on the 5.7% published for the three months to May.
According to the Office for National Statistics (ONS), this lower figure is because of a one-off bonus paid to NHS staff last June, which is also likely to impact next month’s earnings data.
When adjusted for inflation, real regular pay growth was 2.4% during the quarter. The last time wage growth exceeded this level was between March and May this year, when it was pegged at 2.5%.
Total real pay rose by 1.6% compared to Q2 last year, which was again impacted by the one-off bonus paid to NHS staff.
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Employment, inactivity and vacancy figures
Early estimates for July’s employment figures indicate there were 30.4 million payrolled employees, a rise of 0.8% compared with the same period of the previous year.
This is a rise of 252,000 employees over the 12-month period. Compared with the previous month, the number of payrolled employees increased by 0.1 % in July 2024, an increase of 24,000 people.
The UK employment rate was estimated at 74.5% in April to June 2024, below estimates of a year ago, but increased in the latest quarter. In total, just over 33 million people are in employment.
Meanwhile, the UK unemployment rate was estimated at 4.2% in April to June 2024, below estimates of a year ago, and decreased in the latest quarter. This means 1.43 million are estimated to be unemployed.
Elsewhere, the economic inactivity rate was estimated at 22.2% in April to June 2024, above estimates of a year ago, but largely unchanged in the latest quarter. In total, figures reveal there are 9.4 million people in this category.
The UK claimant count for July 2024 increased on the month and on the year to 1.8 million.
And, the estimated number of vacancies in the UK decreased in May to July 2024 by 26,000 on the quarter, coming to 884,000. Vacancies decreased on the quarter for the 25th consecutive period but are still above pre-coronavirus (Covid-19) pandemic levels.
The ONS also revealed there were an estimated 100,000 working days lost because of labour disputes across the UK in June 2024. The majority of the strikes were in the health and social work sector.
This article is based on one that was first published on Mortgage Solutions‘ sister site, YourMoney.com. Read: Wage growth cools again but sets scene for state pension rise next year