Wage growth holds firm while vacancies rise for first time since mid-2022

UK earnings growth remained at its highest level since last April and vacancies rose for the first time in more than two-and-a-half years despite worries over incoming wage cost pressures on firms, official figures have shown.

The Office for National Statistics (ONS) said regular average wages growth was unchanged at 5.9% in the three months to January, staying at the highest level since the three months to April last year.

Wages outstripped Consumer Prices Index inflation by 3.2%, the ONS added.

In an encouraging sign, the ONS said vacancies rose by 1,000 to 816,000 in the three months to February, which is the first rise since the quarter to June 2022.

There was also some optimism in the more real-time payroll figures, showing 21,000 more workers on UK payrolls last month to 30.4 million, after increasing by 9,000 in January.

It comes despite a number of firms warning over job losses and price rises ahead of the incoming increase in national insurance contributions and the minimum wage rise due to take effect next month.

The UK unemployment rate remained unchanged at 4.4% in the three months to January, although the ONS reiterated caution over the statistic due to an overhaul of the nation’s jobs survey.

Liz McKeown, ONS director of economic statistics, said: “Overall, pay growth remains relatively strong, with pay growth high in both the public and private sectors, despite the latter slowing slightly in the latest period.

“The wider labour market picture is relatively unchanged, with the number of employees on payroll broadly flat in the latest period and with little growth seen over much of the last year.”