The Office for National Statistics (ONS) said real wages – a measure of regular wage growth when inflation is taken into account – sank 4.5% in April. This was the biggest drop since records began in 2001. It mainly reflected, ONS said, the jump in measured inflation that month, when the unprecedented rise in the energy price cap pushed the consumer price index measure to a 40-year high. Unemployment rose to 3.8% in the quarter to April, despite a new record high for employment. It may have been explained by the increase in the number of students who are counted as financially inactive, as the ONS has already reported record numbers looking for paid work or better paid work. There has been a rush to secure higher wages from home as inflation has skyrocketed. The squeezing of revenue from rising bills in general has contributed to a significant slowdown in the economy and sparked a bitter trade union struggle for inflation-matching wages. Sam Beckett, head of financial statistics at ONS, said: “Today’s data continue to show a mixed picture of the labor market. “While the number of workers is rising again in the three months to April, the number remains below pre-pandemic levels. “Furthermore, although the number of people who are neither working nor looking for work has decreased slightly in recent times, he is still well where he was before COVID-19 struck. “At the same time, unemployment is approaching its lowest point in 50 years and there has been a record number of redundancies. “Vacancies are still growing slowly. At a new record level of 1.3 million, this is more than half a million more than before the pandemic started.” He added: “The high level of bonuses continues to reduce the impact of price increases on the total earnings of some employees, but with the exception of bonuses, wages in real terms are falling at their fastest rate in over a decade.” The Bank of England is widely expected to raise interest rates again on Thursday as it tries to stop the jump in inflation from turning into a long-term problem if employers resort to sharp pay cuts to fill vacancies. So-called secondary inflation is a major concern for policymakers, as wage increases are seen as making inflation more stubborn. However, interest rate regulators are facing a challenge from unions that are widely struggling to raise wage-based wages for their members. The main battle front is on the railways, where the largest national strike since 1989 was threatened by the RMT union later this month, with 40,000 workers on strike coinciding with strikes on London Underground on June 21. TUC Secretary General Frances O’Grady said: “Working families deserve financial security. “But real wages are falling off as the cost of living skyrockets. “Millions of workers are forced to choose between paying their bills or feeding their families. This is not right. “We urgently need action to get people the wages they deserve. That means raising the minimum wage, a real increase in public sector wages and the government supporting – not attacking – unions that are fighting hard for fairer pay. “ Chancellor Rishi Sunak said of the ONS figures: “Current statistics show that our labor market remains strong with redundancies at an all-time low. “Helping people at work is the best way to support families in the long run and we continue to support people in new and better jobs. “We are also providing immediate assistance with rising prices – 8 million of the most vulnerable families will receive τουλάχιστον at least 200 1,200 in direct payments this year, with all families receiving 400 400.”
