Reports show wages on the rise… but is that reality?

Regular wages fell by a record 3% in April to June 2022, as the rates employers were able to pay failed to keep up with soaring inflation. 

 

Growth in average weekly pay excluding bonuses was 4.7%. However, after inflation was taken into account employees’ wages were worth 3% less than they were in the same period last year, according to the Office for National Statistics’ latest labour market figures. 

 

Total pay including bonuses was up by 5.1%, but represented a 2.5% reduction in pay when adjusted for inflation. Since August 2021, bonus payments have been strong, particularly in March 2022 and in the finance and business services sector. 

 

Between April and June 2022, the consumer prices index including housing costs (CPIH) was an average of 8%. The Bank of England expects inflation to peak at 13% later this year. 

 

Average total pay growth was 5.9% in the public sector and 1.8% in the private sector. The wholesale, retail, hotels and restaurants sector saw the largest rate of growth at 7.7%, followed by finance, business services and construction, both at 6.3%. 

 

Neil Carberry, chief executive at the Recruitment & Employment Confederation (REC), said the figures emphasised the need to tackle inflation and its effects on employers and workers. 

“Private sector pay is growing at a robust pace – but increases are being eaten up by the current inflation rate,” he said. 

Glassdoor’s UK economist Lauren Thomas said the cost of living was a priority for many jobseekers. 

 

Have you found the cost of living increase actually decreasing any pay rises or bonuses you receive or have? 

 

Whilst disposable income is still imperative to most workers, it’s important to remember that other benefits could help employees at this crucial time, such as free health care, access to a benefits system which has free kids days out and the still popular hybrid working schemes.