Recent data reveals a stabilisation in UK wages, with pay in Mendip nearly keeping pace with inflation.

The Office for National Statistics (ONS) announced that total UK pay, inclusive of bonuses, leapt by 8.5%, eclipsing inflation for the first time since March 2022.

Despite this, not all sectors are reaping the benefits. According to experts, industries such as business and finance have seen gains, but wages in retail and transport are lagging behind the cost of living.

Within Mendip, the median wage recorded an 8% uptick in the quarter leading up to July. This is closely aligned with the Consumer Prices Index (CPI) inflation rate of 7.8% for the corresponding period. The median monthly pay in Mendip increased to £2,063 in July from £1,927 in the same month the previous year.

Excluding bonuses, the country's average weekly earnings surged by 7.8% in the quarter ending in July, marking the most significant rise since records commenced in 2001. Ben Harrison, from the Work Foundation at Lancaster University, highlighted the uneven nature of this growth. He stated, "Many low-paid workers in sectors like retail and transport are continuing to see their wages fall short of inflation."

While the UK-wide pay increase offers some relief for households grappling with a cost-of-living crisis, it adds complexity for the Bank of England as they wrestle with persistent inflation, increasing the likelihood of another interest rate hike. Unemployment figures also paint a worrying picture. The rate rose to 4.3% in the quarter to July, up from 4.2%, signalling a rise in the number of unemployed people by 159,000 quarter-on-quarter to 1.5 million. In the South West, unemployment increased by 0.9% in the three months to July compared to last year.

Darren Morgan, ONS Director of Economic Statistics, observed, "The proportion of people neither working nor looking for a job is slightly up, with more students, as well as the long-term sick reaching yet another record." The ONS also reported that 281,000 working days were lost in July due to labour disputes, predominantly in the education and health and social work sectors.