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Pay growth has outstripped inflation by the most for two years, in a further sign that the squeeze on living costs may be starting to ease.
Regular pay rose at an annual rate of 7.7% between July and September, official figures show.
That was higher than average inflation over the same three months, which measures the rate at which prices rise.
However, the number of job vacancies fell for the 16th month in row, the Office for National Statistics said.
Between August and October, the estimated number of vacancies in the UK fell by 58,000 to 957,000, although the ONS said the total remains well above pre-pandemic levels.
The UK’s unemployment rate was largely unchanged between July to September at 4.2%, the ONS said, although the UK statistics body said that there were issues with the way the data had been collected.
Darren Morgan, ONS director of economic statistics, said: “Our labour market figures show a largely unchanged picture, with the proportions of people who are employed, unemployed or who are neither working nor looking for a job all little changed on the previous quarter.”
The latest figures showed that regular pay – which excludes bonuses – rose by 1% after taking inflation into account, which was the largest increase since the three months to September 2021.
For nearly two years, prices of goods such as food and energy have been rising much faster than wages, putting pressure on households’ finances.
But inflation has been easing this year while wage rises have started to pick up.
However, the rise in wages is an average and does not mean that cost of living pressures are subsiding for everyone.
Also the 7.7% growth in regular pay is a slight slowdown from the previous figure of 7.9%.
Responding to the latest labour market figures, the Chancellor, Jeremy Hunt said: “It’s heartening to see inflation falling and real wages growing, keeping more money in people’s pockets.
“Building on the labour market reforms in spring, the Autumn Statement will set out my plans to get people back into work and deliver growth for the UK.”
Labour’s shadow work and pensions secretary, Liz Kendall, said the figures showed “the Tories’ failure on the economy”.
“Our employment rate still hasn’t got back to pre-pandemic levels, unlike every other G7 country, and a record number of people remain locked out of work due to long-term sickness.”
Tips for getting a pay rise
Choose the right time – Scheduling a talk in advance will allow you and your boss time to prepare, and means you’re more likely to have a productive conversationBring evidence – have a list of what you’ve achieved at work and how you’ve developed yourself Be confident – Know your worth and don’t be shy about speaking upHave a figure in mind – look at job adverts online to see the salaries for comparable jobs Don’t give up – keep talking to your employer if it doesn’t work this time and if you can’t get what you want be prepared to look elsewhere