UK WORKERS have seen their pay lag behind inflation at record levels over the past quarter, official figures show.

The Office for National Statistics (ONS) said regular pay, excluding bonuses, grew by 4.7 per cent over the three months to June.

Analysts had predicted that wages would increase by 4.5 per cent.

It comes after CPI inflation hit a new 40-year record of 10.1 per cent in July and is expected to peak at around 11 per cent later this year, after the invasion of Ukraine accelerated rises in energy and fuel bills.


The ONS said this resulted in a 4.1 per cent drop in regular pay for employees once CPI inflation is taken into account, representing the biggest slump since records began in 2001.

The gap between the size of pay increases and wider inflation has contributed to a flurry of union action in recent months, with further train and Tube strikes due to take place this week.

The latest data also highlighted a continued disparity between pay growth in the public and private sectors.

Total pay, which includes bonuses, grew by 5.9 per cent over the quarter to June in the private sector but only 1.8 per cent for public sector employees.

Workers in retail, hospitality and restaurants saw the sharpest pay increases, at an average of 7.7 per cent, as employers have hiked wages in a bid to solve staff shortages.

Official figures also showed that the number of UK workers on payrolls rose by 73,000 between June and July to 29.7 million.

Meanwhile, the unemployment rate increased to 3.8 per cent for the quarter compared with 3.7 per cent for the previous period.

ONS director of economic statistics Darren Morgan said: “The number of people in work grew in the second quarter of 2022, whilst the headline rates of unemployment and of people neither working nor looking for a job were little changed.

“Meanwhile, the total number of hours worked each week appears to have stabilised very slightly below pre-pandemic levels.

“Redundancies are still at very low levels.

“However, although the number of job vacancies remains historically very high, it fell for the first time since the summer of 2020.”

Chancellor Nadhim Zahawi said: “Today’s stats demonstrate that the jobs market is in a strong position, with unemployment lower than at almost any point in the past 40 years – good news in what I know are difficult times for people.

“This highlights the resilience of the UK economy and the fantastic businesses who are creating new jobs across the country.”