Bermuda Post

Thursday, Mar 28, 2024

Cost of living: Inflation takes record bite from regular pay while jobless rate rises unexpectedly

Cost of living: Inflation takes record bite from regular pay while jobless rate rises unexpectedly

The deteriorating picture for real wage growth is the battleground for unions seeking to protect their members from the cost of living crisis, culminating in the planned national rail strikes due to hit later this month.

The latest employment figures show inflation taking a record bite out of regular pay and an unexpected jump in the jobless rate at a time when people are seeking to better shield themselves from the cost of living crisis.

The Office for National Statistics (ONS) reported that real wages - a measure of regular wage growth when inflation is factored in - had plunged by 4.5% during April.

That was the biggest fall since records began in 2001.

It mainly reflected, the ONS said, the leap in headline inflation during that month when the unprecedented rise in the energy price cap drove the consumer prices index measure to a 40-year high.


The jobless rate rose to 3.8% in the three months to April, despite a new record high for employment.

It was potentially explained by a rise in the number of students, who are measured as economically inactive, as the ONS has already reported record numbers seeking paid work or better-paid employment.

There has been a rush to secure higher take-home pay as inflation has surged.

The squeeze on incomes from rising bills across the board has contributed to a marked slowdown in the economy and sparked a bitter union fight for pay awards to match inflation.

Sam Beckett, ONS head of economic statistics, said: "Today's figures continue to show a mixed picture for the labour market.

"While the number of people in employment is up again in the three months to April, the figure remains below pre-pandemic levels.

"Moreover, although the number of people neither in work nor looking for a job has fallen slightly in the latest period, that remains well up on where it was before COVID-19 struck.

"At the same time, unemployment is close to a 50-year low point and there was a record low number of redundancies.

"Job vacancies are still slowly rising, too. At a new record level of 1.3 million, this is over half a million more than before the onset of the pandemic."

She added: "The high level of bonuses continues to cushion the effects of rising prices on total earnings for some workers, but if you exclude bonuses, pay in real terms is falling at its fastest rate in over a decade."


The Bank of England is widely expected to hike its rate again on Thursday as it tries to stop the jump in inflation from turning into a longer-term problem if employers resort to increasing their pay sharply to fill vacancies.

So-called secondary inflation is a major concern for policymakers as surging wages are seen as making inflation more stubborn.

However, the rate-setters are facing down a challenge from unions who are widely campaigning for wage growth in line with inflation for their memberships.

The main battlefront is on the railways where the biggest national strike since 1989 has been threatened by the RMT union later this month, with the action by 40,000 rail workers coinciding with strikes on London's Tube network on 21 June.

TUC general secretary Frances O'Grady said: "Working families deserve financial security.

"But real wages are falling off a cliff as the cost of living soars.

"Millions of workers are being forced to choose between paying their bills or feeding their families. That isn't right.

"We urgently need action to get people the pay rise they deserve. That means boosting the minimum wage, a real public sector pay rise, and the government supporting - not attacking - unions who are campaigning hard for fairer pay."

Chancellor Rishi Sunak said of the ONS data: "Today's stats show our jobs market remains robust with redundancies at an all time low.

"Helping people into work is the best way to support families in the long term, and we are continuing to support people into new and better jobs.

"We are also providing immediate help with rising prices - 8 million of the most vulnerable families will receive at least £1,200 of direct payments this year, with all families receiving £400."

Newsletter

Related Articles

Bermuda Post
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
'I just lost it' Lowe’s worker fired after 13 years of employment for confronting thieves trying to steal $2K of merchandise
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
×