Wages have risen at their highest level for nearly a decade, a new report has revealed.
The data, published by the Office for National Statistics (ONS), shows that regular weekly earnings increased by 3.3 per cent in the year to reach £495 in October 2018.
Once adjusted for inflation, this figure represents the highest quarterly rise since 2011.
The report also shows that the ratio of private to public sector average weekly earnings has been increasing, “indicating that the gap between private and public sector earnings is narrowing”.
The public sector average weekly earnings currently stands at £528 as of October 2018.
Commenting on the report, ONS senior statistician Matt Hughes said: “Real earnings are now growing faster than at any time since around the end of 2016.”
Employment Minister Alok Sharma added: “Today’s statistics show the enduring strength of our jobs market, with wages outpacing inflation for the ninth month in a row and employment at a record high.”
The findings form part of the ONS’s latest labour market economic commentary, published on a quarterly basis.
Across the nation, the review shows that employment grew by 79,000 to 32.48 million – the highest figure since records began in 1971.
The figures also reveal that the number of unemployed women fell by 8,000.
Making an individual analysis, Capital Economics commented: “The latest labour market figures suggest that a recovery in real pay growth is taking root. This supports our view that GDP growth will rebound next year if a ‘no-deal’ Brexit is avoided.
“Admittedly, there have been false dawns in the past few years. But we think that the recent recovery in real earnings growth will probably be sustained.”