Record Wage Gains Still Outpacing Rising Inflation in UK

Wages are rising at the fastest pace in 20 years in the UK, but they still lag far behind the cost of living. Regular wages rose 5.7% in the year to September. This is the fastest increase since pre-pandemic. However, price-adjusted wages fell by 2.7%. The cost of living is now rising at the highest rate in almost 40 years, largely due to the war in Ukraine. Energy and food prices have skyrocketed, and many are struggling to pay bills. ManpowerGroup, one of the UK's largest recruitment agencies, told the BBC that the wage-price gap was "increasing pressure on households".

Britain's unemployment rate rose from 3.5% in August to 3.6% in the three months to September, according to the Office for National Statistics (ONS). That's the lowest level in almost 50 years, but the Bank of England has warned that unemployment could nearly double by 2025 as the UK plunges into a deep recession.