According to the latest data from the UK’s Office of National Statistics, unemployment in the country has hit a record low, however the squeeze on real wages continues.
In the period spanning May to July 2017, unemployment fell to 4.3%, down from 4.9% a year earlier and the lowest rate on record since 1975.
Wage growth, however, stalled. It was estimated that average weekly earnings for employees in Great Britain in real terms fell by 0.4% compared with a year earlier showing that the increase in consumer prices is outpacing wage growth.
The report follows a government announcement that it would relax a 1% cap on wage increases for workers in the public sector. However, inflation was also measured at record high levels for the month of August, which will intensify the squeeze on household incomes.