UK wage growth soared in April

UK wages increased in the three months to April, according to the Office for National Statistics (ONS).

Growth in workers’ average total pay, which includes bonuses, was 6.5 percent. Growth in regular pay, a category which excludes bonuses, was 7.2 percent – the highest rate recorded outside of the COVID-19 pandemic.

Regular pay growth stood at 7.6 percent in the private sector, with the finance and business services sector enjoying the biggest gains at 9.2 percent. In contrast, regular pay in the public sector grew by 5.6 percent.

While analysts expect such figures to add further pressure on the Bank of England to raise interest rates in a bid to control soaring prices, it should be noted that wages actually fell when adjusted for inflation. To be sure, total and regular pay dropped in real terms – by 2 percent and 1.3 percent, respectively.

ONS data published on Tuesday also revealed that the UK unemployment rate rose from 3.7 percent to 3.8 percent between February and April. The economic inactivity rate, meanwhile, decreased by 0.4 percent to 21 percent.

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