UK wages rise faster than expected - but don’t keep up with inflation

The British economy suffered the same malaise as the rest of the industrialised world during the pandemic.

But as other countries recover we seem to be suffering a bout of long economic Covid, and like Covid it is full of mysteries.

Wages are growing at a faster rate, but not in line with inflation - and productivity remains very low.

Trade has suffered, in part down to Brexit, but the number of people over 50 who left the world of work during the pandemic never to return is also presenting a major challenge for the economy.

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[allip]

There's not a worker shortage, there's a shortage of jobs paying wages that people are willing to work for.

[discostoo]

Companies with unrealistic expectations looking for unicorns whilst paying dogshit wages in the UK.

[dpalwh]

I wish people would change the way they talk about wages. A “rise” below inflation is in fact a cut. It should be called a cut.

[Stuark]

News flash people used to work for the bare essentials in life like a home, utilities and food. If you take away their ability to pay for those three things then productivity will drop and so will the economy. People want to buy a nice house, people want to be able to afford kids but since they can’t what’s the point in doing anything? We’re witnessing the collapse of capitalism and it’s the making of the rich and powerful being too greedy!

[donaldwatson]

News Alert! Inflation hasn't just started to affect us. People have been suffering greatly from inflation for almost a century, but notably after 1971. During the industrial revolution, prices of products and services were auctioned down to the point that consumers could literally buy them for as little as a penny thanks to a free market and sound money. All of the problems we have today are a result of government meddling.

[TheRadFactor]

Zero hours contracts are evil. Many developed countries banned them already

[bsetdays]

You may not have noticed inflation in years past, But 8%+ inflation over the past year should've taught you that the cost of living increases every year (home prices, rent, groceries, plane tickets, home repairs, etc.) Only way to beat inflation is by investing your money

[donttrip]

Can somebody please explain to me why we are still pretending wages had anything to do with the current rates of inflation? Wages were stagnant or falling in real terms and still are, literally said it in the report, up, but still below inflation as it has been for decades, just more drastically now. Not hearing much about corporate and energy profiteering or CEO/shareholder pay in regards to inflation, what gives? It is always the workers who have to pay and that "conventional wisdom" is hardly ever challenged.

[annlockey]

Forcing pension aged people to work to get the g9verment out of debt they have done their part.

Zero hour contracts should not be allowed what are the benefits to it?

[hannahlou]

If it doesn't keep up with inflation it is NOT a rise.

[pat]

Good news, we are better off than we thought. If this keeps up we can turn the heating on.

[mauricioandres-]

Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place. <It's all coming together and it could lead to a real disaster towards the end of this year (or sooner). With inflation currently at about 6%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

[bilpat]

Being laid off during the pandemic has left people bitter in how they were treated affecting mentally and emotionally and now resisting to go back to that environment

[OnlySlightyRadioactive]

So it's still yet another pay cut for those lucky enough to get any pay rise at all. I've got to admit this cost of tory crisis is wearing thin.

[Goady]

If you can't get any workers, stop paying minimum wage and expecting 6000 years of experience and tonnes of responsibility

[decimal]

Now private sector wages are rising above 7% on average. So wage rises of 7% in the public sector would have absolutely NO impact on inflation, and no impact upon the private sector. Give the nurses and teachers a pay rise!

[Tx]

Pay people more. The amount of private care companies, clothing and technology companies etc. who pay minimum wage or a few pence over who should pay more, would sort out a lot of the mess. No they couldn’t possibly do that. Having a second job punishes you with 20% income tax, as if that second job is paying for luxuries for you, which isn’t the case. This should be scrapped to encourage people to take on more work.

[svengrot]

Shell-shocked financial backers have a lot to think about and losses to recover from after a terrible 2022. An expansion report and a wealth of other data did little to alter assumptions that the Central bank would likely keep raising interest rates regardless of whether the economy slows down, which implies that portfolios will experience more losses in the first quarter of 2023. I'm currently at a crossroads deciding whether to exchange my $250k security/stock portfolio; how might the continuous market volatility work to my advantage?

[leighbee]

What was this “expected”? They were expecting us to just take the L and get poor then?

[lukeallan]

Its been supressed for too long. Canada and Australia has better pay but UK is richer. What's going on?