August 30 2014 Latest news:
Ben Woods, Business writer
Wednesday, June 11, 2014
Employment rose by a record 345,000 in the three months to April but Britain’s workers were squeezed by a dramatic slowdown in pay growth, official figures showed today.
The number of people in work stood at 30.54 million, according to the Office for National Statistics (ONS), after a rise which was the highest since records began in 1971.
It means 780,000 jobs have been added since a year earlier, the biggest annual rise since 1989.
But pay growth for the period slowed to 0.7pc, a sharp fall on last month’s figure of 1.7pc, blunting hopes of a return to a period of real-terms pay growth.
The increase was well below the latest inflation rate of 1.8pc, meaning the cost of living is still going up more quickly than pay packets.
This slowdown in total pay was largely accounted for by bonuses, which fell sharply compared with a period last year when in many cases they were deferred to April as tax changes were introduced.
But regular pay growth also slowed, to 0.9pc from 1.3pc.
Unemployment fell by 161,000 to 2.16 million, with the jobless rate dropping to 6.6pc.
A Norwich-based business which started as a “man with a van” operation is eyeing further expansion after seeing its predicted turnover increase from £6,000 to £340,000 within five years.