UK bounce back continues as number of employed Brits up 108,000 to 29.5m – and median pay rises 6.3%

THE number of Brits on payrolls across the UK rose by 108,000 between December and January, the Office for National Statistics said.

It means close to 30 million are in work as the jobs market makes a continuing recovery.

PA

The latest figures reveal the number of Brits on payrolls rose 108,000[/caption]

A jump in employment rate, of 0.1% to 75.5%, meant the unemployment rate also reduced by 0.2% to 4.1% over the three months to December.

Sam Beckett, head of economic statistics at the ONS, said: “The number of employees on payrolls rose again in January 2022 and is now well above pre-pandemic levels.

“However, our labour force survey shows the number of people in employment overall is well below where it was before Covid-19 hit.

“This is because there are now far fewer self-employed people.

“The survey also shows that unemployment has fallen again and is now only fractionally above where it was before the pandemic.”

Meanwhile, total pay growth rose to 4.3% for the quarter to December – from 4.2% for the three months to November.

It’s also up 6.3% on average since last January.

But the latest figures on pay show they continued to lag behind inflation.

Recent reports on inflation showed numbers had soared to a near 30-year high of 5.4% back in December.

The new data only means more pressure is likely to be put on the Bank of England to increase interest rates more quickly.

Inflation is expected to reach 7% by spring and many workers will still be feeling the pinch from the cost of living crisis.

As the crisis continues, Brits have been battling rocketing energy bills, on top of soaring food costs, and tax increases, plus other bill rises to come too.

It means forking out of those wages to afford the rising costs.

Sarah Coles, senior personal finance analyst, Hargreaves Lansdown said: “There was a yawning gulf in the jobs market at the end of last year, with millions of people enjoying a comfortable Christmas of bumper bonuses or new jobs, and millions more facing a horrible struggle.

“On average, as long as inflation drops back later in the year, real wages are expected to recover.

“However, that average hides an enormous range of experiences, from those switching jobs for better pay to see them safely through the horrible squeeze this spring, to those who are already seeing their money stretched to breaking point, and still have more price hikes hanging over their heads.”

But the employment hikes were in line with the predictions from a consensus of analysts.

For the three months to October unemployment was 4.2%.

The rate of unemployment was 4.3% from July to September, figures released prior to that showed, and for the three months to August, last summer the rate was 4.5%.

What does inflation mean for wages?

As costs continue to take a sharp rise, it means Brits’ spends are seen to overtake their average weekly earnings growth.

So despite many being in jobs as the latest data shows, their pay would also have to keep up with the soaring cost of living.

That means lots of employers are upping their offerings when advertising for roles, to help get new employees through the door.

But as bosses try to reel in the staff, the costs are set to trickle down to services meanings things like higher prices in bars, restaurants and on the high street, as a result.

Pubs and restaurants have already been rumoured to hike prices by 11% due to cost of living crisis, while supermarket bosses have predicted a 5% rise in food costs.