The Office for National Statistics said more than half a million days were lost to industrial disputes in August and September as annual wage growth failed to keep pace with the rising cost of living. In the latest snapshot of the labor market before Chancellor Jeremy Hunt delivers his autumn statement on Thursday, data suggest public sector workers are bearing the brunt of the cost of living due to much weaker wage growth than the wider economy. The annual rate of wage growth, excluding bonuses, in the private sector rose to 6.6% in the quarter to September, compared with 2.2% for the public sector. Excluding the Covid pandemic, when economic data was distorted by leave and changes in the workforce, the ONS said this was the biggest difference it had experienced. Public sector pay scale Responding to the evidence, Hunt said he believed “people’s hard-earned money doesn’t go as far as it should.” He added: “Putin’s illegal war has driven inflation – a hidden and insidious tax that eats away at wages and savings. “Tackling inflation is my absolute priority and that will guide the tough tax and spending decisions we will make on Thursday. Restoring stability and reducing debt is our only option for reducing inflation and limiting interest rate rises.” The figures come amid rising tensions between the government and public sector unions as nurses, teachers and other workers prepare to strike over underinflationary pay offers. Rishi Sunak and Hunt criticized nurses pushing for above-inflation pay deals, saying they were unaffordable. Nurses in England and Wales have been offered an average rise of 4.75% next year, but are demanding an above-inflation pay deal, claiming they have suffered from years of pay offers that are significantly below the rising cost of living. Health Secretary Steve Barclay dismissed nurses’ demands for an average pay rise of 5% above the retail price index, which stands at 12.6%, as “neither reasonable nor affordable”. The row comes as economy-wide wage growth is failing to keep pace with the highest rates of inflation since the early 1980s, as rising energy prices and the rising cost of a weekly shop put intense pressure on households. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. Darren Morgan, director of labor and economic statistics at the ONS, said the increase in working days lost due to strikes was mainly in the transport and communications sectors. “With real earnings continuing to fall, it’s no surprise that the employers we survey tell us that most disputes are about pay,” he added. The ONS said that in real terms (adjusted for inflation) over the year, pay including bonuses fell by 2.6% and regular pay fell by 2.7%, among the biggest declines in growth since comparable records began in 2001. During the last quarter, the ONS reported that the increase in economic inactivity was due to those who are long-term ill, which rose to a record high of 2.5 million. The jobless rate rose slightly in the quarter to September to 3.6%, slightly up from 3.5% in the quarter to August, although it still remains at the lowest level since the 1970s. It comes amid a sharp increase in economic inactivity – when working-age adults are neither in work nor looking – due to rising levels of ill-health and older workers leaving the labor market. Unemployment chart The chancellor said unemployment near record lows was “proof of the resilience of the UK economy even in the face of serious global challenges”, but added he recognized people were under pressure from rising living costs.
