UK wages grow at record rate

15 Aug 2023

Wages grew at a record annual pace between April and June, according to data from the Office for National Statistics (ONS).

Average weekly earnings, excluding bonuses, hit an annual growth rate of 7.8% during the quarter, the highest annual growth rate since comparable records began in 2001.

Pay, including bonuses, reached 8.2%, the largest annual growth outside of the pandemic.

The ONS data also showed that the UK employment market is easing as unemployment rose from 4% to 4.2%, while the number of people in employment fell slightly.

Jane Gratton, Deputy Director, Public Policy at the British Chambers of Commerce said: 'Today's figures showing pay growing at a record annual pace highlight the unrelenting workforce pressures businesses are facing. In a tight labour market, employers are struggling to contain wage inflation as the expectations of their staff and job candidates continue to rise.

'In the current challenging economic climate, boosting productivity is essential, and investment in skills is crucial to making that happen. We need the government to create the right conditions. For example, by reducing upfront business costs, enabling a more flexible apprenticeship levy and ensuring more access to rapid retraining courses.'