The UK's median monthly salary has surged by 21.4% compared to the pre-Covid era, reaching £2,260.
The positive news is accompanied by a concerning rise in the unemployment rate, as reported by the UK Office for National Statistics (ONS). The unemployment rate in the UK climbed to 4.3% between May and July, up from 4.2% the previous month, with a significant portion of this increase stemming from individuals who have been unemployed for up to a year. This 4.3% rate is 0.3% higher than the pre-pandemic level.
Darren Morgan, the director of economic statistics at the ONS, highlighted that the decline in employment primarily affected men and self-employed individuals.
Economic inactivity, which includes those who are unemployed and not actively seeking work, also experienced a slight uptick of 0.1%, reaching 21.1% by the end of July. This increase was mainly driven by students, while individuals categorized as economically inactive due to long-term sickness reached a record high.
On a more optimistic note, various wage metrics in the UK have continued to rise, as indicated by the ONS. Pay, excluding bonuses, increased by 7.8% between May and July 2023 compared to the same period the previous year. When accounting for bonuses, this figure jumps to 8.5%. Considering the current UK inflation rate of 6.8%, theoretically, wage growth is outpacing the increase in prices. However, the reality may feel different for families grappling with the challenges posed by the rising cost of living.
In summary, the UK's median monthly wages have seen a substantial 6.7% increase compared to the previous year, resulting in a median monthly salary of £2,260 (€2,630). Monthly salaries are now 21.4% higher than they were in February 2020, as illustrated by the statistics.
