- Real wages fell 3.4% in the year to April - the fastest rate in two decades, according to data from the ONS.
- The job market too indicated a cooldown as the unemployment rate rose to 3.8% in the quarter to April 2022.
Even as inflation has reached four decade-high levels, the wages in the UK have failed to catch up with the rising prices, making it difficult for millions of people to manage household budgets. As per the latest figures from the Office for National Statistics (ONS), regular pay (excluding bonuses) in April shrank by 3.4% after adjusted for inflation, making it the biggest fall on a year-on-year basis in two decades.
In the quarter to April, the average total pay, including bonuses, rose by 6.8%, and the regular pay (excluding bonuses) saw a 4.2% rise. However, when adjusted for inflation, the growth in total pay turned out to be 0.4%, while the regular wage fell by 2.2% over the year. This is the biggest quarterly drop in 10 years.