Millions of workers hit by ‘real’ pay cut despite unemployment falling
MILLIONS of workers have been hit by a “real” pay cut despite there, overall, being more people in jobs.
The number of those on the payroll rose by 121,000 between March and April to 29.5 million, the Office for National Statistics said.
Meanwhile, the latest figures showed that unemployment was down to 3.7%.
But the cost of living crisis has meant workers pay packets won’t go as far as they used to, as they battle rising bills, rocketing prices in the shops and more.
Workers face inflation eating away at their living standards as regular pay at 4.2% is being outpaced by rising inflation – currently at 7%.
The Bank of England has even warned of inflation reaching a high of 10% later in the year, further squeezing consumers’ wages.
Darren Morgan, director of economic statistics at the Office for National Statistics, said: “While the economy was still growing in the first three months of 2022, there continued to be a mixed picture for the labour market.
“Total employment, while up on the quarter, remains below its pre-pandemic level.
“Since the start of the pandemic, around half a million more people have completely disengaged from the labour market.
“However, job vacancies are still rising, reaching yet another record high.”
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