Wage Growth Slows Down, but Pay Still Beats Inflation
Bottom line: UK earnings have dipped to just 4.8% in the last quarter, a drop from 4.9% and the lowest rate since June 2022. Even with this slowdown, wages keep rising faster than inflation.
Pay‑Growth Snapshot (Oct–Dec)
- All‑in earnings: 4.8%
(down one point from September’s 4.9%) - Wages excluding bonuses: 2.7%
Still comfortably outpacing inflation. - Payroll headcount: fell slightly last month but remains higher than the previous year.
- Annual growth in pay continued to slow, even though the trend remains positive.
Labour Market Trends
According to ONS’s labour‑force survey, job vacancies are trending downward—has been a dip for over two years now.
Work and Pensions Secretary Liz Kendall’s take: “It’s great news that real pay is still climbing, but we need more to lift living standards.” She added a boost: from April next year, over three million low‑income workers will benefit from an increase in the national living wage.
What This Means for You
While the numbers suggest a slowdown, pay is still outpacing inflation, meaning your wallet is getting a bit stronger… albeit slowly. Keep an eye on job vacancy trends, and anticipate stronger safety nets thanks to the proposed living‑wage bump.
