LONDON: The number of out-of-work in the UK fell by 97,000 to 1.86 million in the three months to December. The unemployment rate now stands at 5.7% of the working population, the Office for National Statistics said.
Average earnings including bonuses rose 2.1% in the quarter from a year earlier. Excluding bonuses, earnings rose 1.7%.
The ONS also said total pay was 2.4% higher in December compared with the same month in 2013 – the biggest lead over inflation since March 2010.
CPI inflation was 0.5% in December, and new data released on Tuesday showed the rate fell to 0.3% in January, its lowest level since records began.
James Sproule, chief economist at the Institute of Directors (IoD), said wages would continue to rise as competition for talent intensified. “Two-thirds of IoD members [are] planning pay rises at least in line with inflation over the coming months,” he added.
