UK Wage Growth At Its Fastest Pace Since 2008

Wage growth in the UK recorded its fastest pace in nearly a decade as wages moved up by 3.1 per cent in the three months to August this year when compared with last year. Inflation was seen at 2.5 per cent for the same period, according to official data on Tuesday (16).

Regular pay excluding bonuses in nominal terms increased by 3.1 per cent; the annual growth rate has not been higher since October to December 2008, said UK’s Office for National Statistics (ONS) in a report.

“Regular pay in real terms increased by 0.7 per cent; the annual growth rate has not been higher since October to December 2016,” ONS added.

"People's regular monthly wage packets grew at their strongest rate in almost a decade, but, allowing for inflation, the growth was much more subdued,” said David Freeman, ONS head of labour market.

"The number of people in work remained at a near-record high, while the unemployment rate was at its lowest since the mid-1970s," he added.

For the three months ending August 2018, the highest employment rate in the UK was in the South West (79.1 per cent) and the lowest was in Northern Ireland (69.2 per cent), ONS said.

During June to August 2018 period, the highest unemployment rate in the UK was in London (4.8 per cent) followed by the lowest was in the South West (2.7 per cent).

Meanwhile, the pound sterling climbed to its highest peak this week during early hours of Tuesday amid the release of the wage growth figures, rising 0.4 per cent to $1.32 and 0.3 per cent to €1.14.

UK consumer prices also moved up 2.7 per cent in the year to August, after adjusting for inflation pays a recorded growth of 0.4 per cent, excluding bonuses. Including bonuses, wages moved up by 2.7 per cent.