• Wage growth hits 10-year high – at 3.2%
• Inflation-adjusted growth is highest for two years
Latest statistics can be found here
Laura Suter, personal finance analyst at investment platform AJ Bell, comments:
“Wage inflation has hit a ten-year high, standing at 3.2% for the three months to September – or 3% including bonuses. This is a reason for celebration for UK workers, marking the highest wage growth since the three months to December 2008.
“This means households are now seeing their wages rise by considerably more than inflation, which stands at 2.4%. When inflation is taken into account the increase in wages is the highest since the three months to December 2016.
“The past few years have seen British workers pummelled by a combination of higher inflation and very sluggish wage growth, meaning they have often faced a real terms wage cut. However, the current low unemployment, which stands at 4.1%, appears to have shifted the odds back into workers’ favour, and we’re starting to see wages rise more meaningfully.
“Retailers on the high street will be hoping this boost to households will mean people loosen the purse strings this Christmas. While we might see some spending, it’s unlikely that we’re going to see a rush to splurge this spare cash.
“The reality for many is that any increase in take-home pay is likely to be funnelled into paying down the large sums of debt many households have taken on in the past few years, including the rising sums on credit cards.”