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| UK real wages are shrinking again, as jobless rate hits 42-year low – business live | UK real wages are shrinking again, as jobless rate hits 42-year low – business live |
| (35 minutes later) | |
| 1.53pm BST | |
| 13:53 | |
| London has highest jobless rate in UK | |
| Now this might surprise you... | |
| London now has a higher unemployment rate than any other region in the UK. | |
| Unemployment in the capital has risen to 6.1% in the first three months of 2017, new ONS statistics show, up from 5.5% in the previous quarter. The lowest unemployment rate was in the South East, at just 3.5%. | |
| The ONS says: | |
| Allowing for some individual volatility, the overall pattern for the last few years has been for gently falling unemployment rates. The highest unemployment rate in the UK for January to March 2017 was for London at 6.1%. This follows a period of a number of years when the highest unemployment rate was consistently the North East. | |
| Londoners also worked the longest average working week, at 33.7 hours; the lowest was in Yorkshire and The Humber at 31.3 hours. | |
| For the first time since 2012, London now has the highest unemployment rate in the UK | |
| 1.22pm BST | |
| 13:22 | |
| The latest stunning developments from the Trump White House are likely to weigh on the US stock market today. | |
| The Dow Jones industrial average, and the wider S&P 500 index, are both expected to fall by around 0.5% when trading begins in around one hour. | |
| Should be an interesting US session: overnight trading has brought S&P500 down to the May lows, 2380/82: pic.twitter.com/MoQjBjhp4T | |
| FXTM Research Analyst Lukman Otunuga says “a feeling of unease” has gripped the markets today, pushing shares down in Asia and Europe. | |
| With the latest bombshell developments in the Trump saga seen as an obstacle that may delay the proposed fiscal spending further, Wall Street should follow the bearish cues from Asian and European markets this afternoon. | |
| Updated | |
| at 1.24pm BST | |
| 1.10pm BST | 1.10pm BST |
| 13:10 | 13:10 |
| The pound has gained half a cent today, to $1.296, as traders applaud the latest rise in UK employment. | The pound has gained half a cent today, to $1.296, as traders applaud the latest rise in UK employment. |
| Sterling is also benefitting from the political upheaval on the other side of the Atlantic, following those reports that Donald Trump had pushed former FBI director James Comey to drop investigations into Michael Flynn, former national security advisor. | Sterling is also benefitting from the political upheaval on the other side of the Atlantic, following those reports that Donald Trump had pushed former FBI director James Comey to drop investigations into Michael Flynn, former national security advisor. |
| The pound hasn’t traded over $1.30 since last September. | The pound hasn’t traded over $1.30 since last September. |
| Chris Saint, senior analyst at Hargreaves Lansdown, says: | Chris Saint, senior analyst at Hargreaves Lansdown, says: |
| The $1.30 level is again coming into sight, with the dollar weighed down by worries that President Trump could find it trickier to forge ahead with his intended economic reforms amid reports of interference into an FBI investigation into links between his campaign team and Russia. | The $1.30 level is again coming into sight, with the dollar weighed down by worries that President Trump could find it trickier to forge ahead with his intended economic reforms amid reports of interference into an FBI investigation into links between his campaign team and Russia. |
| 12.52pm BST | 12.52pm BST |
| 12:52 | 12:52 |
| Greek anti-austerity protests turn violent | Greek anti-austerity protests turn violent |
| Helena Smith | Helena Smith |
| Over in Greece, clashes have broken out between demonstrators and riot police during protests against the country’s austerity programme. | Over in Greece, clashes have broken out between demonstrators and riot police during protests against the country’s austerity programme. |
| Violence erupted outside parliament between hooded “anti-establishment” demonstrators throwing rocks and flares, and riot officers, who fired tear gas. | Violence erupted outside parliament between hooded “anti-establishment” demonstrators throwing rocks and flares, and riot officers, who fired tear gas. |
| Raw Video: Protesters fire flares at police outside Greek parliament#Greece #Vouli pic.twitter.com/u8xbR8Pqm9 | Raw Video: Protesters fire flares at police outside Greek parliament#Greece #Vouli pic.twitter.com/u8xbR8Pqm9 |
| Earlier, thousands of strikers had marched through Greece, opposing the latest package of tax rises and economic reforms agreed between Athens and its lenders -- which MPs vote on tomorrow night. | Earlier, thousands of strikers had marched through Greece, opposing the latest package of tax rises and economic reforms agreed between Athens and its lenders -- which MPs vote on tomorrow night. |
| Addressing crowds in Athens’ square of national resistance, the leader of the communist party Dimitris Koutsoumbas said: | Addressing crowds in Athens’ square of national resistance, the leader of the communist party Dimitris Koutsoumbas said: |
| “Essentially a class war is underway .. these harsh unpopular measures, the fourth memorandum along with all the previous memorandums, should be thrown in the basket of history.” | “Essentially a class war is underway .. these harsh unpopular measures, the fourth memorandum along with all the previous memorandums, should be thrown in the basket of history.” |
| As Greek MPs began debating the measures, trade unionists told the Guardian that there will be a massive show of protest culminating with a demonstration outside parliament on Thursday night when the chamber is expected to pass the bill. | As Greek MPs began debating the measures, trade unionists told the Guardian that there will be a massive show of protest culminating with a demonstration outside parliament on Thursday night when the chamber is expected to pass the bill. |
| “This is the 32nd general strike since 2010 [when the Greek debt crisis erupted] and we are not going to give up,” said Grigoris Kalomoiris who heads the public sector workers’ union, Adedy. | “This is the 32nd general strike since 2010 [when the Greek debt crisis erupted] and we are not going to give up,” said Grigoris Kalomoiris who heads the public sector workers’ union, Adedy. |
| Kalomoiris added: | Kalomoiris added: |
| “For some the pension cuts that these policies will bring will amount to the loss of two pensions while the lowering of the tax [threshold] will mean the loss of a monthly salary. Some of us are not going to accept that without a fight.” | “For some the pension cuts that these policies will bring will amount to the loss of two pensions while the lowering of the tax [threshold] will mean the loss of a monthly salary. Some of us are not going to accept that without a fight.” |
| There is major disquiet in the ranks of the ruling Syriza party with leftwing MPS saying they have been “pushed to the limit” by the latest cost-cutting measures. Although no defections are expected – with the prospect of losing power viewed as the biggest incentive now spurring MPs in the governing two-party coalition to endorse the policies – many have privately described the measures as unconstitutional. | There is major disquiet in the ranks of the ruling Syriza party with leftwing MPS saying they have been “pushed to the limit” by the latest cost-cutting measures. Although no defections are expected – with the prospect of losing power viewed as the biggest incentive now spurring MPs in the governing two-party coalition to endorse the policies – many have privately described the measures as unconstitutional. |
| “Many [cadres] would like to be out in the streets [protesting] not in parliament supporting these measures,” said one. “But the alternative [default and euro exit] is just not on the cards. Everyone agrees it would be catastrophic.” | “Many [cadres] would like to be out in the streets [protesting] not in parliament supporting these measures,” said one. “But the alternative [default and euro exit] is just not on the cards. Everyone agrees it would be catastrophic.” |
| The policies, which will see pensions being pared back by another 18%, will not be enforced until 2019 towards the end of the present government’s four-year term in office. Prime minister Alexis Tsipras has argued that counter-measures offsetting losses will effectively neutralise the cuts for those expected to be hardest hit by them. | The policies, which will see pensions being pared back by another 18%, will not be enforced until 2019 towards the end of the present government’s four-year term in office. Prime minister Alexis Tsipras has argued that counter-measures offsetting losses will effectively neutralise the cuts for those expected to be hardest hit by them. |
| 11.58am BST | 11.58am BST |
| 11:58 | 11:58 |
| Britain’s poor productivity and weak pay are inextricably linked, argues the CBI, which represents UK businesses. | Britain’s poor productivity and weak pay are inextricably linked, argues the CBI, which represents UK businesses. |
| To get wages higher, firms need to boost their output -- and the key is to boost research and development spending. UK R&D is equivalent to just 1.7% of gross domestic product today; the CBI is pushing the government to set a target of 3%. | To get wages higher, firms need to boost their output -- and the key is to boost research and development spending. UK R&D is equivalent to just 1.7% of gross domestic product today; the CBI is pushing the government to set a target of 3%. |
| Alpesh Paleja, CBI Principal Economist, says: | Alpesh Paleja, CBI Principal Economist, says: |
| “Rising employment continues to reinforce the importance of the UK’s flexible labour market. | “Rising employment continues to reinforce the importance of the UK’s flexible labour market. |
| “However, weakening productivity and slower pay growth, coupled with rising inflation, will continue to squeeze real household earnings. | “However, weakening productivity and slower pay growth, coupled with rising inflation, will continue to squeeze real household earnings. |
| “Therefore maintaining the UK’s reputation as a great place to do business, for example by increasing R&D spend to 3% of GDP by 2025, will help boost the UK’s productivity. This is the only sustainable route to higher wages, and better living standards.” | “Therefore maintaining the UK’s reputation as a great place to do business, for example by increasing R&D spend to 3% of GDP by 2025, will help boost the UK’s productivity. This is the only sustainable route to higher wages, and better living standards.” |
| 11.36am BST | 11.36am BST |
| 11:36 | 11:36 |
| If Britain’s jobless rate is really at a 40-odd year low, why doesn’t it feel like a nation at full employment? | If Britain’s jobless rate is really at a 40-odd year low, why doesn’t it feel like a nation at full employment? |
| Our economics editor Larry Elliott has highlighted three reasons: | Our economics editor Larry Elliott has highlighted three reasons: |
| One reason for the weakness of earnings growth is the ferocious squeeze on public sector pay, which – stripped of bonus payments – is rising at just 1.3% a year. | One reason for the weakness of earnings growth is the ferocious squeeze on public sector pay, which – stripped of bonus payments – is rising at just 1.3% a year. |
| A second factor is that employers are able to buy in cheap labour from overseas. Migration from other EU countries has not fallen off a cliff despite the result of last summer’s referendum: according to the Office for National Statistics, the number of non-UK nationals from the EU working in the UK rose by 171,000 to 2.32 million between the first quarter of 2016 and the first quarter of 2017. This continues a trend, which has seen the number of workers from the other 27 EU countries double since the recession of 2008-09. | A second factor is that employers are able to buy in cheap labour from overseas. Migration from other EU countries has not fallen off a cliff despite the result of last summer’s referendum: according to the Office for National Statistics, the number of non-UK nationals from the EU working in the UK rose by 171,000 to 2.32 million between the first quarter of 2016 and the first quarter of 2017. This continues a trend, which has seen the number of workers from the other 27 EU countries double since the recession of 2008-09. |
| Finally, the nature of work seems to have changed. Work by David Blanchflower, Rui Costa and Stephen Machin has shown that earnings growth for the self-employed – who account for 15% of the workforce – has been particularly weak in recent years. People are working flat out in the gig economy but still struggling to make ends meet. The labour market has, for want of a better word, been Uberised. | Finally, the nature of work seems to have changed. Work by David Blanchflower, Rui Costa and Stephen Machin has shown that earnings growth for the self-employed – who account for 15% of the workforce – has been particularly weak in recent years. People are working flat out in the gig economy but still struggling to make ends meet. The labour market has, for want of a better word, been Uberised. |
| 11.13am BST | 11.13am BST |
| 11:13 | 11:13 |
| Labour: Families suffering falling living standards | Labour: Families suffering falling living standards |
| Here’s John McDonnell, Labour’s Shadow Chancellor, on today’s labour market report: | Here’s John McDonnell, Labour’s Shadow Chancellor, on today’s labour market report: |
| “These figures bring home the Tories’ total failure to improve the living standards of working families. | “These figures bring home the Tories’ total failure to improve the living standards of working families. |
| “Real wages are lower than they were in 2010 and, after seven years of the Tories, they are now falling again. | “Real wages are lower than they were in 2010 and, after seven years of the Tories, they are now falling again. |
| “The choice at this election couldn’t be clearer: either a Tory party presiding over a crisis in living standards or a Labour government that will build a Britain for the many, not the few.” | “The choice at this election couldn’t be clearer: either a Tory party presiding over a crisis in living standards or a Labour government that will build a Britain for the many, not the few.” |
| Updated | Updated |
| at 11.19am BST | at 11.19am BST |
| 11.11am BST | 11.11am BST |
| 11:11 | 11:11 |
| New productivity figures have also been released this morning, and they’re a shocker. | New productivity figures have also been released this morning, and they’re a shocker. |
| Productivity across the UK economy shrank by 0.5% in the first three months of 2017, the first fall since the end of 2015. | Productivity across the UK economy shrank by 0.5% in the first three months of 2017, the first fall since the end of 2015. |
| It’s because the UK economy took on more workers, who worked longer hours, but didn’t deliver a corresponding rise in economic output. | It’s because the UK economy took on more workers, who worked longer hours, but didn’t deliver a corresponding rise in economic output. |
| Britain: really depress yourself this morning - look at the dreadful productivity figures pic.twitter.com/cojHEh5YT5 | Britain: really depress yourself this morning - look at the dreadful productivity figures pic.twitter.com/cojHEh5YT5 |
| 10.46am BST | 10.46am BST |
| 10:46 | 10:46 |
| The decline fall in real wages is particularly painful for workers, because pay packets hadn’t clawed back all the losses since the financial crisis. | The decline fall in real wages is particularly painful for workers, because pay packets hadn’t clawed back all the losses since the financial crisis. |
| 10.40am BST | 10.40am BST |
| 10:40 | 10:40 |
| Lib Dems: Brexit vote is hurting workers | Lib Dems: Brexit vote is hurting workers |
| The Liberal Democrats are blaming the Brexit vote for the slump in real wages. | The Liberal Democrats are blaming the Brexit vote for the slump in real wages. |
| Sir Vince Cable, the former business secretary, says workers are paying the price for the plunge in sterling last June. | Sir Vince Cable, the former business secretary, says workers are paying the price for the plunge in sterling last June. |
| “This squeeze on living standards is almost certainly caused by the falling pound since the Brexit vote. | “This squeeze on living standards is almost certainly caused by the falling pound since the Brexit vote. |
| “If Theresa May is allowed to pursue her extreme Brexit agenda, we can expect further weakening of the economy and erosion of people’s living standards. | “If Theresa May is allowed to pursue her extreme Brexit agenda, we can expect further weakening of the economy and erosion of people’s living standards. |
| “People don’t have to settle for a bad Brexit deal that will cost jobs and push up prices. A brighter future is possible. | “People don’t have to settle for a bad Brexit deal that will cost jobs and push up prices. A brighter future is possible. |
| “The Liberal Democrats will give you the final say on the deal, with a chance to reject it and stay in the EU.” | “The Liberal Democrats will give you the final say on the deal, with a chance to reject it and stay in the EU.” |
| 10.22am BST | 10.22am BST |
| 10:22 | 10:22 |
| Britain’s wage squeeze threatens to undermine the economic recovery, warns Suren Thiru, head of economics at the British Chambers of Commerce. | Britain’s wage squeeze threatens to undermine the economic recovery, warns Suren Thiru, head of economics at the British Chambers of Commerce. |
| If the disparity between pay and price growth continues to increase as we predict, household spending is likely to slow further, weakening overall economic activity. | If the disparity between pay and price growth continues to increase as we predict, household spending is likely to slow further, weakening overall economic activity. |
| “The next government must do more to close the skills gap, including improving the transition from education to work by guaranteeing universal experience of work in all schools for under 16s, and delivering a future immigration regime based on economic need, rather than an arbitrary migration target. This will help firms compete on the global stage, boosting UK productivity and growth.” | “The next government must do more to close the skills gap, including improving the transition from education to work by guaranteeing universal experience of work in all schools for under 16s, and delivering a future immigration regime based on economic need, rather than an arbitrary migration target. This will help firms compete on the global stage, boosting UK productivity and growth.” |
| 10.13am BST | 10.13am BST |
| 10:13 | 10:13 |
| Dutch bank ING says that Britain enjoyed an “astonishing” jump in employment last month. | Dutch bank ING says that Britain enjoyed an “astonishing” jump in employment last month. |
| The real standout in today’s UK jobs report was the surge in employment growth. The three month on three month average came in well above consensus at 122k, lifted by a huge 340k “single month” increase in jobs – the highest in 2 years. | The real standout in today’s UK jobs report was the surge in employment growth. The three month on three month average came in well above consensus at 122k, lifted by a huge 340k “single month” increase in jobs – the highest in 2 years. |
| This is hard to square given recent survey data, which suggests the outlook for hiring is more muted. | This is hard to square given recent survey data, which suggests the outlook for hiring is more muted. |
| But they’re concerned by the fall in real wages, which is likely to prevent an interest rate hike before 2019. | But they’re concerned by the fall in real wages, which is likely to prevent an interest rate hike before 2019. |
| It’s also hard to ignore the fact that wages are now growing at a noticeably slower pace than prices. The key measure of wage growth, which excludes bonuses, came in at 2.1%. When taken together with yesterday’s acceleration in inflation to 2.7%, real wages are now falling. We’ve already seen measures of consumer activity slow through the first quarter. | It’s also hard to ignore the fact that wages are now growing at a noticeably slower pace than prices. The key measure of wage growth, which excludes bonuses, came in at 2.1%. When taken together with yesterday’s acceleration in inflation to 2.7%, real wages are now falling. We’ve already seen measures of consumer activity slow through the first quarter. |
| ING: "Astonishing rise in UK employment won't mask fall in real wages. This already appears to be dampening consumption." No hike before '19 | ING: "Astonishing rise in UK employment won't mask fall in real wages. This already appears to be dampening consumption." No hike before '19 |
| 10.10am BST | 10.10am BST |
| 10:10 | 10:10 |
| Resolution: UK faces worse pay squeeze since Waterloo | Resolution: UK faces worse pay squeeze since Waterloo |
| The slump in real wages last quarter means Britain is facing its worst decade for pay since the Napoleonic Wars, says the Resolution Foundation. | The slump in real wages last quarter means Britain is facing its worst decade for pay since the Napoleonic Wars, says the Resolution Foundation. |
| It fears the situation will get worse this year. Stephen Clarke, their economic analyst, explains: | It fears the situation will get worse this year. Stephen Clarke, their economic analyst, explains: |
| “Britain kicked off the year with another welcome record on employment, and another big fall in unemployment. This welcome jobs boost will provide a much needed boost to family incomes. | “Britain kicked off the year with another welcome record on employment, and another big fall in unemployment. This welcome jobs boost will provide a much needed boost to family incomes. |
| “However, the good news on jobs is not feeding through to positive news on pay growth, which turned negative at the start of the year and looks set to remain below inflation throughout most of 2017. | “However, the good news on jobs is not feeding through to positive news on pay growth, which turned negative at the start of the year and looks set to remain below inflation throughout most of 2017. |
| “Coming so soon after the big post-crisis pay squeeze, this new phase of falling pay means that this decade is set to be the worst in over 200 years for pay packets.” | “Coming so soon after the big post-crisis pay squeeze, this new phase of falling pay means that this decade is set to be the worst in over 200 years for pay packets.” |
| 10.06am BST | 10.06am BST |
| 10:06 | 10:06 |
| Updated | Updated |
| at 10.14am BST | at 10.14am BST |
| 10.00am BST | 10.00am BST |
| 10:00 | 10:00 |
| Here’s Professor Geraint Johnes, Director of Research at the Work Foundation, on today’s jobs figures: | Here’s Professor Geraint Johnes, Director of Research at the Work Foundation, on today’s jobs figures: |
| “The latest employment figures indicate remarkably strong performance, with unemployment falling by 53000 over the first quarter of the year to a rate of 4.6%. Indeed, unemployment has fallen in every region except London and the South East. This has been primarily due to a large increase in the number of full-time employees in employment (some 196000 across the UK). The number of part-time employees has meanwhile fallen (by 61000). There has been little change in the number of self-employed workers over the quarter. | “The latest employment figures indicate remarkably strong performance, with unemployment falling by 53000 over the first quarter of the year to a rate of 4.6%. Indeed, unemployment has fallen in every region except London and the South East. This has been primarily due to a large increase in the number of full-time employees in employment (some 196000 across the UK). The number of part-time employees has meanwhile fallen (by 61000). There has been little change in the number of self-employed workers over the quarter. |
| “On pay, the data are less encouraging. In the first quarter of the year, the year-on-year growth in total pay amounted to 2.4%. This is below the current rate of price inflation and indicates a renewed squeeze in real pay. The pay data indicate a collapse in wage settlements in the construction industry, and this is significant because much of the employment growth in the last part of 2016 came from that sector. While welcoming the strong employment growth evidenced in the first quarter’s figures, sustaining this into the longer term may therefore prove challenging.” | “On pay, the data are less encouraging. In the first quarter of the year, the year-on-year growth in total pay amounted to 2.4%. This is below the current rate of price inflation and indicates a renewed squeeze in real pay. The pay data indicate a collapse in wage settlements in the construction industry, and this is significant because much of the employment growth in the last part of 2016 came from that sector. While welcoming the strong employment growth evidenced in the first quarter’s figures, sustaining this into the longer term may therefore prove challenging.” |
| 9.59am BST | 9.59am BST |
| 09:59 | 09:59 |
| Unemployment: the key charts | Unemployment: the key charts |
| Duncan Weldon of the Resolution Group says some of the charts in today’s labour market report are “astonishing”. | Duncan Weldon of the Resolution Group says some of the charts in today’s labour market report are “astonishing”. |
| 1. The employment rate just keeps getting higher. pic.twitter.com/aqjYSvDRuM | 1. The employment rate just keeps getting higher. pic.twitter.com/aqjYSvDRuM |
| 2. There's been a huge shift away from public sector employment. pic.twitter.com/6rZmv0aZ0u | 2. There's been a huge shift away from public sector employment. pic.twitter.com/6rZmv0aZ0u |
| 3. The picture for real wages is just grim. pic.twitter.com/2B5kZJO59D | 3. The picture for real wages is just grim. pic.twitter.com/2B5kZJO59D |
| 9.50am BST | 9.50am BST |
| 09:50 | 09:50 |
| Britain is still creating jobs. It just isn’t paying people enough to protect them from the rising cost of living. | Britain is still creating jobs. It just isn’t paying people enough to protect them from the rising cost of living. |
| Today’s labour market report shows that the number of people in work in the UK increased by 122,000 in the 3 months to March 2017 to 31.95 million. | Today’s labour market report shows that the number of people in work in the UK increased by 122,000 in the 3 months to March 2017 to 31.95 million. |
| Around 200,000 full-time jobs were created, while the number of part time jobs fell by 78,000. | Around 200,000 full-time jobs were created, while the number of part time jobs fell by 78,000. |
| This drove the employment rate to a new record high of 74.8%. | This drove the employment rate to a new record high of 74.8%. |
| 9.44am BST | 9.44am BST |
| 09:44 | 09:44 |
| This chart shows how the gap between inflation (2.7% in April) and basic pay growth (2.1% in January-March) has widened, driving real wages into the red. | This chart shows how the gap between inflation (2.7% in April) and basic pay growth (2.1% in January-March) has widened, driving real wages into the red. |
| The gap between UK inflation (2.7% and rising) and wage growth (2.1%) is widening. Real wages falling at fastest rate in 3 years. pic.twitter.com/YmNIKe2Q4m | The gap between UK inflation (2.7% and rising) and wage growth (2.1%) is widening. Real wages falling at fastest rate in 3 years. pic.twitter.com/YmNIKe2Q4m |
| Including bonuses, wages rose by 2.4% year-on-year, thanks to “bonuses in the finance and insurance sector”. | Including bonuses, wages rose by 2.4% year-on-year, thanks to “bonuses in the finance and insurance sector”. |
| Updated | Updated |
| at 10.15am BST | at 10.15am BST |
| 9.37am BST | 9.37am BST |
| 09:37 | 09:37 |
| UK jobless rate hits 42-year low, but real wages shrink | UK jobless rate hits 42-year low, but real wages shrink |
| Breaking! Britain’s unemployment rate has hit its lowest level since 1975. | Breaking! Britain’s unemployment rate has hit its lowest level since 1975. |
| The jobless rate fell to 4.6% in the January-March quarter, down from 4.7% a month ago, the Office for National Statistics reports. That’s lower than expected, and implies that the jobs market is holding up in the face of Brexit. | The jobless rate fell to 4.6% in the January-March quarter, down from 4.7% a month ago, the Office for National Statistics reports. That’s lower than expected, and implies that the jobs market is holding up in the face of Brexit. |
| But there’s bad news too. Real wages are shrinking, as workers – particularly in the private sector – suffer from rising inflation. | But there’s bad news too. Real wages are shrinking, as workers – particularly in the private sector – suffer from rising inflation. |
| Excluding bonuses, average weekly earnings increased by 2.1% in the quarter, that’s the weakest growth since the three months to July 2016. | Excluding bonuses, average weekly earnings increased by 2.1% in the quarter, that’s the weakest growth since the three months to July 2016. |
| That means wages are not keeping pace with inflation -- which was 2.3% in February and March, and 2.7% in April. | That means wages are not keeping pace with inflation -- which was 2.3% in February and March, and 2.7% in April. |
| The ONS says: | The ONS says: |
| The recent increase in consumer price inflation including owner occupiers’ housing costs has seen the annual rate of real wage growth (excluding bonuses) turn negative for the first time since the 3 months to September 2014. | The recent increase in consumer price inflation including owner occupiers’ housing costs has seen the annual rate of real wage growth (excluding bonuses) turn negative for the first time since the 3 months to September 2014. |
| The pay squeeze is particularly painful for public sector workers. | The pay squeeze is particularly painful for public sector workers. |
| Private sector regular pay grew by 2.3% in the 3 months to March 2017, while public sector pay grew by 1.3%, compared with the same period a year ago. | Private sector regular pay grew by 2.3% in the 3 months to March 2017, while public sector pay grew by 1.3%, compared with the same period a year ago. |
| More to follow! | More to follow! |
| Updated | Updated |
| at 10.17am BST | at 10.17am BST |