London Daily

Focus on the big picture.
Saturday, Jul 19, 2025

Second largest fall in real wage growth since records began while unemployment rate ticks up

Second largest fall in real wage growth since records began while unemployment rate ticks up

The ONS reveals the impact of inflation on wages while the data also shows there were more working days lost to strike action in October than in any month since November 2011.

The UK recorded its second largest fall in real wage growth since records began in 2001 during October and the unemployment rate rose, according to new official jobs figures which also highlight the growing impact of strikes on the economy.

The Office for National Statistics (ONS) reported that wage growth was 4.2% weaker when the effects of CPI inflation were included - following a reading of 3.7% the previous month - revealing a clear deterioration in the cost of living crisis.

A low of 4.6% had been recorded in April - shortly after the inflation surge was exacerbated by the Russian invasion of Ukraine towards the end of February.


The rate of inflation hit 11.1% - a 41-year high - in October as it reflected the latest increases to energy bills, albeit tempered by government support.

The ONS data also charted the clear divide between public and private sector wage growth over the three months to October, running at an average annual rate of 2.7% for public sector workers.

It was 6.9% for private sector staff - much higher but still well below the inflation rate.

The figures were released as a new round of rail strikes got underway - with more widespread disruption due in the run-up to the festive season involving the likes of nurses, ambulance staff and Royal Mail workers.

The ONS reported that 417,000 days were lost to strikes in October - a figure that is set to rise in the data to come as unions remain at loggerheads with the government on public sector pay.



The ONS stats reflected the surge in higher private sector wage deals as pay, excluding bonuses, were up 6.1% - the biggest increase since records began in 2001 when jumps during the COVID-19 period, which were distorted by lockdowns and government support measures, were excluded.
Advertisement

The figure promises to enter the calculations when the Bank of England, which is pressing for lower wage settlements as part of its fight against inflation, meets to set Bank rate this week.

The jobless rate, the ONS reported, rose to 3.7% over the same period.

That was up from the 3.6% figure reported a month ago.

The wider data also showed that vacancies dropped by 65,000 in the three months to November to 1.9 million - the fifth quarterly fall in a row and the first annual fall since the beginning of last year.

But the figures signalled that more people are choosing to return to work, with the inactivity rate falling to 21.5% as those in their 50s opt to go back to work at a time of rocketing costs.

Sam Beckett, ONS head of economic statistics, said: "This quarter the proportion of people neither working nor looking for a job fell, driven by a drop in the number of working-age people regarding themselves as retired.

"This tallies with other data which suggest more people in their 50s are thinking of going back to work, at a time when the cost of living is rising rapidly.

"With more people re-engaging with the labour market, there were more in employment and also more who were actively looking for a job."
Newsletter

Related Articles

0:00
0:00
Close
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
×