Latest figures from the Office for National Statistics (ONS) find that despite a 4% rise in wages across the UK in February 2022, rising inflation means that UK workers are 1% poorer.
According to ONS, UK unemployment dipped to its pre-pandemic rate of 3.8% in the three months to February 2022. The country’s employment rate remains unchanged at 75.5%, 1.1 % lower than in February 2020.
UK vacancies reached a new high in February, of 1.3 million. Vacancies in the manufacturing sector fell by 4,000 from its all-time high of 98,000 in January. The sector had 41,000 more vacancies than a year ago, a rise of 79%.
Another ONS survey showed that 28% of food and drink businesses (which included manufacturers, wholesalers and retailers) faced labour shortages in March 2022, in line with shortages reported across all UK sectors, at 31%. According to the same survey, 60% of food and drink businesses reported a low number of applicants for roles on offer.
The figures suggest that the rise in demand for workers has driven up wages across the board. In February 2022, 29% of food and beverage businesses reported paying higher wages for existing employees and 30% for new employees compared with normal expectations for this time of year.
Commenting on the ONS figures, the Food and Drink Federation (FDF) said that the shift towards worklessness due to sickness and early retirement “appears to have become an entrenched feature of the UK economy, which is troublesome in the face of surging demand for workers.”
FDF predicted that, as households cut their discretionary spending due to rises in the cost of living and the disruptions brought on by the war in Ukraine, businesses will slow down their demand for workers.
