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THE Bank of England has been urged to continue lowering interest rates this week after official figures today revealed an unexpected rise in wages.
Office for National Statistics figures showed real wages are now £23 a week higher in real terms than they were at the start of the global financial crisis in August 2008.
The growth of 5.2 per cent in the third quarter of 2024 is higher than the 4.9 per cent in the previous three months and was driven largely by the private sector.
Businesses however continued to cut jobs, with payrolled employees falling by 35,000 over the period and vacancies dropping for the 29th consecutive month to 818,000 in November.
The youth unemployment rate also remained high at 12.7 per cent as did inactivity from long-term sickness at 2.8 million.
TUC general secretary Paul Nowak welcomed the government’s moves to boost investment but said that it “must deliver that investment quickly, and the Bank of England must keep moving with interest rate cuts.
“Small improvements in private-sector pay growth are no reason to delay action,” he said.
“The Tories left behind a failed economy.
“Poor growth has left us with falling vacancies, high youth unemployment, and too many people stuck waiting for the healthcare they need to return to work.
“Ministers are taking important steps to improve support for people out of work.
“Jobcentres must become places people enter with hope, not fear. They should give young people genuine opportunities to earn and learn.
“And they should help everyone who wants to improve their skills, find better work, and take a step up in their career.”
Ben Harrison, director of the Work Foundation at Lancaster University, said vacancies are now near pre-pandemic levels and the strongest period of wage growth for almost a quarter of a century “may raise questions for Bank of England rate setters as they contemplate reducing interest rates this side of Christmas.
“But the reality is that many workers are barely feeling better off,” he said.
“The impact of a decade of stagnating wages and a cost-of-living crisis that has hit living standards means that average wages are just £23 a week higher in real terms than they were at the start of the global financial crisis in August 2008.”
