Wages Rise Above Inflation for First Time in 2 Years But Squeeze Continues for Some Sectors

Average pay growth rose above inflation for the first time in almost 2 years, providing some relief from the cost of living crisis.

Wage growth was higher in the private sector (8%) than the public sector (6.8%). Finance and manufacturing saw the biggest pay rises.

Job vacancies continued to fall, with the real estate sector seeing a 30% drop. But vacancies remain far above pre-pandemic levels.

Economists expect wage growth to slow as inflation eases and employers face higher interest rates. Future unemployment figures may show job losses.

Some sectors like construction saw lower than average pay rises. One brickmaker faced falling demand but rising wage costs, showing the squeeze continues for some.