Private sector wage growth has dropped to the lowest rate in five years, new official figures show.
But in the public sector wages are still “elevated” according to the Office for National Statistics (ONS) due to the continued impact of earlier pay deals.
Public sector workers saw their annual earnings increase by 7.9%, while private sector staff saw an average 3.6% pay increase.
The figures mean people are still getting pay rises, but they are smaller than they had been.
New unemployment figures were also released on Tuesday. They show the jobless rate remained at 5.1% in the three months to November – a period dominated by talk of a tough budget ahead – the data from the ONS revealed.
The rate had stood at 4.1% when Labour took office in 2024.
It is, however, expected to rise further in the coming months. As higher employment costs dampen demand for new staff, the Big Four accounting company KPMG expects the rate could hit 5.3% by the end of the year.
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