UK employment falls as wages rise at record rate

investmentweek.co.uk:

Annual growth in regular pay, excluding bonuses, was 7.8% in April to June 2023, the highest regular annual growth rate the ONS has seen since comparable records began in 2001. 

Estimates from the Office for National Statistics put the employment rate at 75.7% in April to June 2023, 0.1 percentage points lower than January to March 2023. 

The estimate of employees on payroll for July 2023 showed a monthly increase, up 97,000 on the revised June 2023 figure, to 30.2 million, though this is likely to also be revised.

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However unemployment also rose during the period, driven by the amount of people out of work for up to six months.

The unemployment rate for April to June 2023 increased by 0.3 percentage points on the quarter to 4.2%.  

Annual growth in regular pay, excluding bonuses, was up by 7.8% in April to June 2023, the highest regular annual growth rate the ONS has seen since comparable records began in 2001. 

The annual growth in employees' average total pay, including bonuses, was 8.2%; this total growth rate is affected by the NHS one-off bonus payments made in June 2023. 

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However in real terms (adjusted for inflation using Consumer Prices Index including owner occupier's housing costs (CPIH)), annual growth for total and regular pay rose on the year, by 0.5% for total pay, and by 0.1% for regular pay.

The economic inactivity rate fell by 0.1 percentage points on the quarter, to 20.9% in April to June 2023, driven by those inactive because they are looking after family or home. 

Meanwhile, those inactive because of long-term sickness increased to a record high.

Flows estimates show that, between January to March 2023 and