High wage growth persisted in the three months to February, official data has shown, as public sector pay increases continued to drive growth.
Annual growth in average weekly earnings excluding bonuses hit 5.9 per cent, the Office for National Statistics (ONS) said on Tuesday.
Average earnings, including bonuses, came in at 5.6 per cent, also matching market expectations.
“Regular pay growth remains strong having increased slightly in the latest period,” said Liz McKeown, an economics director at the ONS.
“Growth accelerated in the previous pay rises fully fed through to our headline figures, while pay in the private sector was little changed.”
The national unemployment rate remained unchanged at 4.4 per cent.
Stubbornly high wage growth is unlikely to make the Bank of England’s May decision any easier as high inflation continues to worry policymakers.
However, many economists believe President Donald Trump’s tariffs, including those on vehicle imports and steel, will likely slow price growth.
The overall picture for the labour market is somewhat murkier.
Firms have warned in various surveys that higher taxes introduced by Chancellor Rachel Reeves, which only came into effect in April, would lead to a slowdown in hiring.
Economists and policymakers may take the latest release with a pinch of salt too as the ONS has come under fire for its handling of labour market data.
