Earnings increase while unemployment drops

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The latest statistics released today by the ONS on earnings and unemployment show that:

  • The rate of annual pay growth for total pay was 6.0%, and the annual pay growth for regular pay was 5.7%, in July to September 2022; this is the strongest growth in regular pay seen outside of the pandemic period.
  • The UK unemployment rate was estimated at 3.6%, which is 0.2 percentage points lower than the previous three-month period and 0.4 percentage points below pre-pandemic levels.

CEO of RIFT Tax Refunds, Bradley Post, commented: “The latest increase in earnings combined with a drop in unemployment makes for welcome reading. But when considered against the current economic backdrop, the reality is that most will still find themselves teetering on the edge of financial insecurity as the rising cost of living swallows any boost to their monthly pay packet.

“When you also consider the impending likelihood of tax hikes in this week’s budget, it’s unlikely that many, if any of us, will be enjoying an actual increase in earnings in the near future.”