Wages grew by 3.8% in the three months to January, according to the Office for National Statistics.
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UK wage growth failed to keep up with the rising cost of living between November and January, new figures show.
Wages rose, but when taking rising prices into account, regular pay showed a 1.0% fall from a year earlier, the Office for National Statistics said.
It comes amid concerns that war in Ukraine will push up households’ energy and food bills even further.
The new figures also show that the unemployment rate fell to 3.9%, while job vacancies hit another record high.
According to the ONS, employees’ regular pay, excluding bonuses, grew by 3.8% between November and January from a year earlier.
However, the rising cost of food, energy and household goods has pushed inflation, which measures how the cost of living changes over time, to a 30-year high. Prices surged by 5.5% in the 12 months to January, up from 5.4% in December, increasing pressure on household budgets.
The Resolution Foundation think tank has warned that the squeeze on workers will get worse, with those on the lowest incomes most likely to be affected by surging bills if supplies for gas or food are affected by the conflict between Russia and Ukraine.
The ONS also said that its latest figures showed the jobs market in the UK was continuing its recovery from the coronavirus pandemic.
The number of unemployed people fell below pre-pandemic levels for the first time, while there was another strong rise in the number of pay-rolled employees in February.
Grant Fitzner, chief economist at the ONS added: “However, the number of people out of work and not looking for a job rose again, meaning total employment remained well below its pre-pandemic level.
“We have seen yet another record number of job vacancies, and with the redundancy rate falling to a new record low, demand for workers remains strong.”
- 6 days ago
