Wages rise by more than expected but unemployment also grows, Office for National Statistics show | Business News

According to official figures, the unemployment rate rose more than expected in the three months to September.

The Office for National Statistics (ONS) said average weekly earnings, excluding bonus payments, grew at an annual rate of 5.7% in the three months to September.

This is up from 5.4% the previous month.

Economists polled by Reuters had predicted a 5.5% increase.

However, at 5.7%, it is still far below the official inflation rate of 10.1%.

Real wage growth was weaker than 3.7% in September when inflation effects are included, the ONS said.

The unemployment rate increased from 3.5% to 3.6% as the number of employed people decreased by 52,000 people.

Darren Morgan, ONS director of economic and labor statistics, said of the change: “The proportion of people who are not working or not looking for work has risen again.

“Since the outbreak of the pandemic, this shift has been largely due to older workers leaving the labor market, but in the most recent quarter the main contribution actually came from younger groups.

“August and September saw more than half a million working days lost to strikes, the highest number of working days in two months in more than a decade, with the majority coming from the transportation sectors. communication and communication.

“With real earnings continuing to decline, it’s no surprise that the employers we surveyed are telling us most of the disputes are about pay.”

The figures come as the economy faces two problems from the highest inflation in 40 years and the impact of Trussonomics – namely the small budget that has now reversed much of September.

Official figures last week showed contract economy in the third quarter of the year as cost of living crisis achieve the need, leave the country Of course for a recessionaccording to the Bank of England, which believes the unemployment rate could reach 6.5%.

The Truss government’s growth plan has exacerbated the problem as financial markets question the UK’s economic credibility, making imported goods more expensive through a drop in prices. value of the British pound.

Other effects include an increase in the cost of a fixed-term mortgage, which adds to the mountain of household bills.

Jeremy Hunt, the prime minister, will deliver his autumn statement to MPs on Thursday with little firepower to help ease the general pain.

He told Sky News on Sunday that everyone faces higher taxes as the government, now led by Rishi Sunak, aims to take a more sustainable approach to public finances.

The package is believed to be designed to save around £50 billion from the loan annually over the medium term.

Mr Hunt said in reaction to the jobs data: “Tackling inflation is my absolute priority and that guides the tough tax and spending decisions we’ll be making on Thursday. .

“Restoring stability and reducing debt are our only options to reduce inflation and limit rate hikes.”

Shadow Chancellor Rachel Reeves said: “Today’s figures show the direct impact of 12 years of Tory economic missteps and low growth.

“Real wages have fallen again, thousands of people over 50 have left the labor market and a record number of people have lost their jobs because they are stuck on the NHS waiting list or they are not supported with suitable employment. fit.

“What Britain needs in Thursday’s fall statement is fairer options for those who are working and a tailored plan for growth.”