New figures from the Office for National Statistics (ONS) has revealed annual wage growth to reach ten-year high.
The average weekly earnings in the UK increased at an annual rate of 3.3% in the three months to October, the best rate since the 3.2% growth in 2008.
The number of people unemployed also grew to 1.38 million. People in employment also grew by 79,000 to a record high of 32.48 million.
Many of the jobs that were created were in IT, healthcare and social work. Positive news amid the Brexit uncertainty.
ONS senior statistician Matt Hughes said: “The employment rate has continued to rise in the most recent three months, returning to a joint record high, boosted by an increase in full-time workers.”
“There was a corresponding fall in the inactivity rate, while the unemployment rate was virtually unchanged. Real earnings are now growing faster than at any time since around the end of 2016.”
Geraint Johnes, Professor of Economics at Lancaster University Management School, said: “The latest labour force statistics indicate a rise in unemployment of 20000 over the quarter to August-October this year, the unemployment rate now standing at 4.1%.”
“Employment, however, has continued to rise at a healthy pace, with an increase in the numbers of full-time employees of some 100000. Moreover, the gradual shift from part-time to full-time employment has continued, as has the shift of activity from self-employment to employee status. Particularly notable is a decline of 40000 in the numbers of part-time self-employed workers. These trends all align with a narrative of continued adjustment to normality following the severe labour market disruption of the recession and slow recovery.”
“The data on pay continue to be encouraging. On the preferred three month measure, total pay rose at an annual rate of 3.3% in October, up from 3.1% the previous month. The less reliable single month estimate indicates growth of 3.9% – though this should be treated with caution because the base figure in October 2017 appears low,” he added.
The UK wage news in the UK has helped support gains in the pound, which were down on Monday following Theresa May’s decision to pull the vote on her Brexit deal.
The minister of state for employment, Alok Sharma, said about the figures released on Tuesday: “Today’s statistics show the enduring strength of our jobs market, with wages outpacing inflation for the ninth month in a row and employment at a record high.”
“This is benefitting people across the country, with almost 400,000 more people in work in the last year. Putting more money in the pockets of working families, and showing the UK remains a great place to invest and do business.”