Jump in wages fails to keep pace with inflation - Chamber

Real wages in the UK fell by one per cent between December 2021 and February 2022 as pay struggled to keep up with increasing rate of inflation, according to figures released today.

The Office for National Statistics (ONS) said regular weekly wages, excluding bonuses, increased by four per cent between December 2021 and February 2022, but when adjusted for inflation actually dropped compared with the previous year.

Meanwhile, the new figures also revealed the West Midlands had the largest change in employment rate of any UK region - increasing by 2.3 per cent.

The largest decrease in the economic inactivity rate compared with the same period last year was in the West Midlands, at 1.7 per cent.

Nationally, job vacancies rose to a record high 1,288,000 from January to March 2022 - but the rate of growth in vacancies continued to slow down.

Emily Stubbs (pictured), policy and projects manager at Greater Birmingham Chambers of Commerce, said: "While it is encouraging to see the largest change in employment rate of any region over the year here in the West Midlands, the region continues to struggle with relatively high levels of unemployment.

"It is crucial that stakeholders across the region continue to work together to ensure West Midlands residents can access meaningful jobs.

"As these wage figures show inflation taking effect and squeezing pay packets, we can expect to see cost pressures continuing to rise for individuals and businesses, with National Insurance contributions increasing this month, and the Bank of England anticipating inflation to reach eight per cent this year.

"The Chamber 's latest Quarterly Business Report launches on 27 April and will provide further insights on how these pressures are impacting local organisations and the opportunities for individuals and businesses associated with investment in the Greater Birmingham economy."

Click here to find out more and register your place at our Quarterly Business Report Q1 Briefing: Investment in Greater Birmingham