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Pay exceeds inflation

Wage growth on the rise as unemployment eases

Money - own picWages excluding bonuses have risen at their fastest pace since the financial crash, according to official figures.

Pay rose by 3.1% in the three months to August, compared with a year ago, outpacing inflation at 2.5%.

New data also showed UK unemployment fell by 47,000 to 1.36 million to remain at 4%.

The number of people out of work in Scotland fell by 14,000 to 106,000, pushing the rate down from 4.3% to 3.9%.

Suren Thiru, head of economics at the British Chambers of Commerce, said: “While wage growth increased again, the pace at which pay growth is exceeding price growth remains well below the historic average, meaning the current squeeze on spending power is unlikely to ease.

“Achieving a meaningful improvement in wage growth will be an uphill struggle unless the underlying issues that continue to limit pay settlements are tackled – notably sluggish productivity, considerable underemployment and high upfront costs for businesses.”

 



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