MILLLIONS of workers are facing a cut to pay in real terms as inflation outpaces wage growth.
New figures released today show that wages in “real terms” fell by a record 3%, meaning less money in people’s pockets.
Millions of works are facing a pay cut in real terms as inflation outpaces wage growth
It is the biggest fall since records began in 2001.
Data from the Office of National Statistics (ONS) reveal total pay, not including bonuses, grew by 4.7%, in the three months to June.
But when taking into account inflation, pay fell by 3%.
That’s because inflation has reached 9.4%, with essentials like food and fuel among the costs rising.
When inflation is rising at a rate faster than wages, it means that your money doesn’t stretch as far.
The Bank of England has warned the figure could reach 11% this year.
Inflation is a measure of how the price of goods and services have changed over the past year.
Darren Morgan, ONS director of economic statistics, said: “The value of real pay continues to fall.
“Excluding bonuses, it is still dropping faster than at any time since comparable records began in 2001.”
The number of UK workers on payrolls rose by nearly 73,000 between June and July to 29.7 million.
But the number of job vacancies fell by 19,800 between May and July to 1,274,400.
It is the first quarterly fall since June to August 2020.
Employment stood at 75.5%, for those aged between 16 and 64 and unemployment for the same category was 3.8%.
Last month, figures from the ONS showed the average salary fell by 2.8%, a record drop.
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