U.K. real wages, which reflect the power of employee’s pay after accounting for inflation, fell by an annual 3% in the last quarter.
Lauren Thomas, U.K. economist at career site Glassdoor, said inflation and rising prices are currently workers' main concerns.
"The only constant in 2022 is change and skyrocketing prices. Even with high wage growth and a tight labour market, workers are feeling the pinch as inflation emerges as the biggest winner. With real wages falling a record 3.0 percent thanks to inflation, the cost of living is a priority for many job seekers," she said.
The ONS' data also showed that unemployment remained stable at 3.8%, while job vacancies fell during the same timeframe. James Smith, a developed markets economist at ING, said that the Bank of England will be paying close attention to both wage growth and the unemployment rate in the U.K. "The Bank of England's official forecasts point to a material increase in the unemployment rate over the next couple of years, but policymakers will be looking for signs that firms are 'hoarding' staff even where margins are squeezed, amid concerns about their ability to rehire again in the future. Wage growth has decent momentum right now, and the committee will be concerned that this could be sustained," he said.
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