THE TUC warned that the economy remains in a “perilous” condition after official figures showed today that regular earnings rose by a near-record 7.8 per cent in the three months to August.

The Office for National Statistics (ONS) said that average wages had increased faster than the consumer prices index rate of inflation for the first time since October 2021 and that inflation fell to 6.7 per cent in August from a 41-year high of 11.1 per cent last October.

According to a provisional real-time estimate, however, the number of British workers on payrolls fell by 11,000 month on month to 30.1 million in September.

The ONS also revised down its estimate for the previous month, to a fall of 8,000 payrolled workers in August compared with July, from the 1,000 decrease initially reported.

TUC general secretary Paul Nowak said: “This is the third month in a row that PAYE employment has fallen, with vacancies also continuing to decline.

“And while average pay has finally crept above inflation, real wages are still shrinking across the public sector, retail, hospitality and construction.

“Let’s not forget, if pay packets had been growing at pre-crisis levels, workers would be on average nearly £15,000 better off.

“So for millions, there will be little relief from the cost-of-living crisis and many will be rightly worried about their job prospects.

“The Conservatives’ economic mismanagement is costing this country dear. Britain is stagnating under their watch.”

Unite general secretary Sharon Graham said the figures would give “some small respite” for working families after “the real value of wages has been eroded over more than a decade.”

She added: “If boardrooms toughen their stance towards the workforce, Unite will continue to fight for fair pay to win out over corporate profiteering.”

The ONS said that public-sector pay had risen by 6.8 per cent in the three months to August, although it continued to lag behind the private sector, which saw an 8 per cent increase.

Chancellor Jeremy Hunt said: “It’s good news that inflation is falling and real wages are growing, so people have more money in their pockets.”

But his Labour counterpart Rachel Reeves said: “Thirteen years of Conservative economic failure has left working people worse off, with low growth, low pay and high taxes.

“Working people saw pay rise faster under the last Labour government. But with the Conservatives, we have seen a decade of stagnant wage growth.”