UK unemployment rate stays unchanged as wage rate grows – what it means for YOUR money

THE nation's unemployment rate has stayed the same while earnings have grown for the third consecutive time, new data shows.

The rate of UK unemployment remained unchanged at 4.4 per cent in the three months to December, according to The Office for National Statistics (ONS).

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But average weekly earnings, excluding bonuses, rose by 5.9% in the last three months of 2024, compared with the same period a year earlier.

Meanwhile, the average earnings rate was 3.4 per cent higher after taking Consumer Prices Index inflation into account.

Liz McKeown, director of economic statistics at the ONS, said: "Growth in pay, excluding bonuses, rose for a third consecutive time, with increases seen in both the private and public sector.

"After taking account of inflation, real pay growth also increased slightly."

Experts had expected wages to rise at this level despite the threat of looming job cuts.

A survey of UK employers this week revealed that companies are planning to cut jobs or recruit fewer people ahead of the increase to National Insurance payments and wages.

Businesses which were questioned by the Chartered Institute of Personnel and Development (CIPD) said they would raise their prices to cover increasing employment costs.

Commenting on the figures, work and pensions secretary Liz Kendall said: "Since July, wages have continued to grow at pace, putting vital money back in people’s pockets as we work to make work pay and improve living standards for all.

"But these figures also show that too many people are being locked out of work and denied that chance, including those sick and disabled.

"Instead of writing people off and labelling them, we must step up our support."

What is means for your money

Growing wages are good news for workers as it means they are getting more in their pay packets each month.

This, in turn, is good news for the government as it means more people are pumping money into the economy.

This leads to a rise in Gross Domestic Product (GDP), which is a sign an economy is healthy and doing well.

It also means the government has more money to spend on public services like schools, hospitals and libraries which benefits everyone.