The rate of 海角视频 unemployment rose to 3.9% in the three months to January from 3.8% in the previous three months, the Office for National Statistics has said. 海角视频 average regular earnings growth eased back to 6.1% in the three months to January and lifted 2% after taking Consumer Prices Index inflation into account, the Office for National Statistics said.
Responding to new official 海角视频 labour market data, Chancellor Jeremy Hunt said: 鈥淥ur plan is working. Even with inflation falling, real wages have risen for the seventh month in a row.
鈥淭ake-home pay is set for another boost thanks to our cuts to national insurance which in total are putting over 拢900 a year back into the average earner鈥檚 pocket.鈥
Alice Haine, Personal Finance Analyst at , said: 鈥淏ritain鈥檚 jobs market continued to show signs of softening as high interest rates create challenges for employers and dampen hiring activity. Unemployment edged up to 3.9%, wage growth eased further and vacancies continued their downward journey, falling for the 20th consecutive period 鈥 the longest run of quarterly falls on record.
鈥淕rowth in regular earnings, excluding bonuses, slowed for a fifth time in a row to an annual 6.1% in the three months to January, while annual growth in average total pay, which includes bonuses, eased to 5.6% over the same period. In real terms, regular salaries grew 1.8% and total pay 1.4% once inflation is factored in, which means incomes are continuing to beat price rises and stretching further than a year ago.
鈥淲age growth has been easing since the summer of last year though it remains robust so the Bank of England may want to see it slowing further if it is to push ahead with interest rate cuts later this year. The Bank of England has a tricky decision to make at its next rate-setting meeting later this month when you consider the economy entered a technical recession towards the end of last year. The general sense is that interest rates will remain higher for longer as the central bank waits for more concrete evidence that inflationary pressures are easing so for now Britain鈥檚 workers must continue to grapple with the cost-of-living squeeze.
鈥淪alary rises are likely to be more muted this year as employers look to keep costs down and protect profits and some might find themselves without a job at all if businesses decide to go down the redundancy route to slash staffing costs. Job loss can be an extremely worrying time for workers, particularly those with no back-up funds in place to cover periods without earned income. The financial implications for those that cannot find a new role quickly can be harsh, with the longer they are out of work increasing the likelihood of bill payments being missed and defaults on debt or mortgage repayments.
鈥淭hose who fear their job is at risk can prepare their finances by building an emergency fund that can cover up to six months鈥 of expenses, paying down any expensive debts to ensure they can stretch their savings as far as possible and keeping a tight lid on spending.鈥
