First Pay Growth reported in 12 months

Wages have risen at their fastest pace in over a year, according to the latest data from the Office for National Statistics (ONS) released this week.

Between August and October, regular pay increased by an annual rate of 5.2%, surpassing expectations and outpacing inflation.

The UK's labour market has shown signs of improvement in recent months. Between August and October 2024, the employment rate for individuals aged 16 to 64 was estimated at 74.9%, a slight increase from the previous quarter and consistent with the same period last year. Estimates for payrolled employees in the UK increased by 24,000 (0.1%) between September and October 2024, and rose by 140,000 (0.5%) between October 2023 and October 2024. 

The unemployment rate for those aged 16 and was estimated at 4.3%, higher than a year ago but showing a decrease from the previous quarter. Economic inactivity among people aged 16 to 64 was estimated at 21.7%, a decline both annually and quarterly.

In September 2024, the total number of workforce jobs reached 36.8 million, marking an increase of 73,000 (0.2%) from June 2024. This growth encompassed both employee positions and self-employment roles.

These figures suggest a gradually strengthening labour market, with employment on the rise and economic inactivity declining.

Source: Office For National Statistics (ONS)