Inflation

Despite the recent increase in National Insurance contributions, data from Brightmine, indicates that a sharp drop in pay awards is unlikely in the near term.

Chancellor Rachel Reeves has welcomed new figures indicating an unexpected rate of growth for the UK economy in February.

There were no further surprises for employers in today’s Spring Statement as they prepare for next week’s minimum wage and national insurance increases.

UK inflation fell by more than expected in February, down from 3% to 2.8%.

Ahead of an interest rate decision today by the Bank of England, the figures show wage growth including bonuses at 5.8% – broadly unchanged in the three months to January.

The UK jobs market is “in recession territory” and the Chancellor must act decisively ahead of the spring statement, a think tank warns.

Pay rises in the private sector remained at 4% in the three months ending in January 2025, according to new figures.

Pay awards remained at lowest level for four years as inflation levels increased by more than expected in January 2025.

UK wages are growing while job vacancies continue to fall, according to the latest official figures.

The KPMG/Recruitment and Employment Confederation report on Jobs survey for January 2025 showed that the fall in permanent hiring extended the current period of contraction to 28 months.

What do the latest forecasts on economic growth and inflation mean for the labour market?

Median pay rise for autumn 2024 declined to 3.3%, according to Brightmine, as national insurance change begins to have an impact.

Labour market statistics released in January 2025 show that real wages increased by 3.4% year on year, their quickest pace since 2021.

As the year draws to a close, Zoe Woolacott reviews how pay awards have tracked throughout 2024 and compares them to previous years.

The UK rate of inflation has hit its highest level in eight months, rising to 2.6% in the year to November.