Earnings still on downward trend


Earnings continue to fall far behind the rising cost of living. The latest figure for Total Pay growth (temporarily elevated in March due to bonus earnings), picked up a little, from 4.3% in May to 6.0% in June. 


But that was still barely half the month’s RPI inflation rate, and around four points behind CPI inflation (see column left). 


Regular Pay (excluding bonuses) grew by 5.0% (matched by a 5% median on lowest basic rates level recorded by LRD Payline). 


However, there was a sharp contrast between 5.8% earnings growth in the private sector and 1.8% in the public sector (excluding financial services).


Recently announced Pay Review Body awards, although contested by many unions, should soon see public sector earnings growth rise a little. 


In other respects, the latest labour market data showed little change over the last quarter in age 16+ employment (32.792 million) or the 16-64 employment rate (75.5%). 


Self-employment remains low, whereas there were 73,000 more payrolled employees in the month. 


Official 16+ unemployment stood at 1.294 million, a rate of 3.8%, while 16-64 economic inactivity stood at 8.891 million, a rate of 21.4%. 


Job vacancies dropped slightly, but only to 1.274 million.