UK wages rise in real terms for first time in a year
New figures show wages rose by 2.8% in February, when inflation was 2.7%

The rate at which people’s wages are increasing is faster than the rise in the cost of the goods and services they can spend their earnings on, new figures show.
The Office for National Statistics (ONS) says wages rose by 2.8% in February, while inflation was 2.7%. It was the first time since January 2017 that wage growth had outstripped inflation.
Real terms wage growth is good news for the economy – it will “revive hopes for the high street”, says Sky News. Retailers have been struggling since the 2016 Brexit vote pushed the value of the pound down, and the cost of living rose.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The Bank of England will be looking closely at the news, says The Times, because wage growth is key to the amount of consumer spending, which is “one of the key drivers of growth” and is “dependent on household finances”.
The Bank is widely expected to lift the interest rate to 0.75% next month – and the new figures will add weight to that suspicion, says Sky.
Think tank the Resolution Foundation warned that there is still a “lot of ground to make up”, and noted that despite the increase, average earnings are still £800 a year lower in real terms than they were ten years ago before the global financial crisis.
The Times warns that economists expressed “some concern that wages had not grown as fast as expected” – there had been predictions of a 3% increase.
The ONS also announced that the rate of unemployment has fallen to a 43-year low of 4.2%, with 16,000 fewer people jobless. There was a record high employment rate of 75.4%, with 55,000 more people in work – a total of 32.36 million employed.
The number of unfilled jobs remained roughly the same, compared to the previous month, at 815,000, suggesting that unemployment will fall further.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
June 2 editorial cartoons
Cartoons Monday's political cartoons include Elon Musk's next project, the Democratic party's efforts to win more male votes, and Donald Trump's taco order.
-
Cary Arms & Spa: a secluded coastal retreat in South Devon
The Week Recommends Perched above Babbacombe Bay on the English Riviera, this tranquil inn is the perfect bolthole for a weekend by the sea
-
Sail in style onboard the brand-new Explora II
The Week Recommends Hit the high seas on a luxury cruise from Barcelona to Rome
-
Tariffs were supposed to drive inflation. Why hasn't that happened?
Talking Points Businesses' planning ahead helped. But uncertainty still looms.
-
How will Wall Street react to the Trump-Powell showdown?
Today's Big Question 'Market turmoil' seems likely
-
Why is the threat of stagflation rising?
Talking Points Inflation is sticky. Trump's tariffs won't help.
-
Pros and cons of tariffs
Pros and Cons As Trump imposes tariffs on cars from overseas, here are the arguments for and against duties
-
Is inflation about to surge again?
Talking Points The Federal Reserve is cautious about Trump's policies
-
Will Rachel Reeves have to raise taxes again?
Today's Big Question Rising gilt yields and higher debt interest sound warning that Chancellor may miss her Budget borrowing targets
-
US economy still strong in final preelection report
Speed Read It grew at a solid 2.8% annual rate from July through September
-
Fed cuts rates half a point, hinting victory on inflation
Speed Read This is the Fed's first cut in two years