Wage growth increased by 3.4% after taking into account inflation, driven by strong increases in the private sector.
Real pay rises at fastest rate since 2021
Getty ImagesReal pay in the UK has risen at its fastest rate for more than three years on average, driven by strong wage growth in the private sector.
After accounting for the impact of inflation, pay packets increased on average by 3.4% on the year.
Growth in private sector earnings were stronger than wages for public sector jobs between September and November, according to the Office for National Statistics (ONS), compared with the same period the year before.
Despite a risk of higher wages pushing up inflation, the Bank of England is still expected to cut interest rates next month.
Rates are currently at 4.75%, but traders have bet on a cut to 4.5% in February, after inflation, which measures the rate prices rise at over time, unexpectedly fell last month.
Liz McKeown, director of economic statistics at the ONS, said pay growth had picked up for the second consecutive period, “again driven by strong increases in the private sector”.
Regular pay increased by an annual average of 5.6%, but when taking into account inflation, the real wage increase was 3.4%.