Average wages in the UK have surpassed inflation, with pay packets increasing by 3.4% year-over-year between October and December, according to official ONS data. Despite the unchanged unemployment rate of 4.4%, businesses are bracing for rising employment costs, which may result in workforce reductions and increased prices. The ONS reports a 5.9% annual pay growth, with private sector salaries growing by 6.2%. Economic forecasts suggest that as inflation, notably influenced by energy costs, is expected to rise, a cautious outlook on rate cuts and wage growth will shape the near future.
In a complex economic environment, average wages are outpacing inflation, increasing by 3.4% from the previous year, signaling resilience in both public and private sectors.
Businesses express concerns about rising costs associated with increases in National Insurance and minimum wages, which might impact future pay rises and investment.
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