The Office for National Statistics (ONS) said average weekly earnings, excluding bonus payments, rose at an annual rate of 5.7% in the three months to September. That was up from 5.4% last month. Economists polled by Reuters had expected a 5.5 percent increase. However, at 5.7% it remains well below the official inflation rate of 10.1%. Real wage growth was 3.7% lower in September when the effects of inflation were included, the ONS said. The unemployment rate rose to 3.6% from 3.5% as the number of people employed fell by 52,000. Darren Morgan, director of employment and economic statistics at the ONS, said of the shift: “The proportion of people neither working nor looking for work has risen again. “Since the start of the pandemic, this shift has been driven largely by older workers leaving the labor market altogether, but in the most recent quarter the main contribution came from younger cohorts. “Over half a million working days were lost to strikes in August and September, the highest two-month total in more than a decade, with the vast majority coming from 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.” The figures were released as the economy grapples with twin problems from the highest inflation in 40 years and the fallout from Trusonomics – namely the now largely reversed September mini-budget. Official data last week showed the economy shrank in the third quarter of the year as the cost-of-living crisis hit demand, leaving the country on course for recession, according to the Bank of England, which believes the unemployment rate may reach 6.5%. . The Truss government’s growth plan exacerbated problems as financial markets questioned the UK’s economic credibility, making imports more expensive due to the collapse in the value of the pound. Other effects included increasing the cost of fixed-term mortgages, adding to the mountain of household bills. Jeremy Hunt, the Chancellor, will deliver his Autumn Statement to MPs on Thursday with some firepower to help ease the general pain. Use Chrome browser for more accessible video player 2:50 “Taxes will rise for everyone” He told Sky News on Sunday that everyone faced higher taxes as the government, now led by Rishi Sunak, aims to take a more sustainable approach to public finances. It is believed the package will be designed to save around £50bn of annual borrowing in the medium term. Reacting to the jobs data, Mr Hunt said: “Tackling inflation is my absolute priority and that is driving the tough tax and spending decisions we will be making on Thursday. “Restoring stability and reducing debt is our only option for reducing inflation and limiting interest rate rises.” Shadow chancellor Rachel Reeves said: “Today’s figures confirm the impact of 12 years of Tory economic mistakes and low growth. “Real wages have fallen again, thousands of over-50s have left the labor market and a record number of people are out of work because they are stuck on NHS waiting lists or not getting the right employment support. “What Britain needs in Thursday’s Autumn Statement is fairer options for workers and a proper growth plan.”
