Think tank the Resolution Foundation recently stated that whilst the UK’s economic slowdown is affecting employment, it isn’t yet affecting workers’ pay packets.
The Foundation found that whilst the UK’s jobs market continues to cool, pay growth remains resilient. Data from HMRC showed that private sector wages grew by 5.4% in cash terms in the three months to October, while public sector wages grew by 4.3%.
Firms are still hiring, according to the Resolution Foundation, at a rate of 600,000 jobs per month, which was slightly down on pre-pandemic levels of 650,000 jobs per month.
Hannah Slaughter, Senior Economist at the Resolution Foundation, commented: ‘Britain’s jobs market is continuing to cool amidst a wider economic slowdown. The number of people in work is starting to fall, and business confidence is weak.
‘But there are also signs of resilience. Firms are still hiring at a respectable rate and pay packets are still growing. The big living standards question for 2025 will be whether hiring and wage growth can continue to boost household incomes, or if they’ll tail off with the rest of the economy.’
24/12/2024
View all >
14/07/2025
IHT on pensions most unpopular tax rise
Inheritance Tax (IHT) on pensions is the most unpopular of the tax raising measures introduced by the Labour government during its first year, according to a survey.
READ MORE
HMRC to fine crypto investors
UK-based holders of cryptoassets will have to provide personal details to crypto service providers or face penalties of up to £300 from HMRC.
HMRC plans risk overreach
HMRC plans to introduce a tax avoidance criminal offence risks overreach, the Chartered Institute of Taxation (CIOT) has warned.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.