More than half of UK workers (51%) are feeling more worried about affording Christmas this year, according to a survey from Reed.
The most recent data from the ONS revealed that average weekly earnings rose at an annual rate of 5.7 percent.
However, inflation is still soaring, and the Consumer Price Index (CPI) hit 11.1 percent in October, the highest rate in more than 40 years. While salaries are rising, when pitted against inflation, workers will find their pay is down in real terms.
A survey of 5,000 workers revealed this is a cause for concern for many as we move into the festive period, with more than half worried about affording Christmas on their current salary.
Just 6 percent of workers felt less worried about affording festivities this year.
Spending is below pre-pandemic levels
For businesses, this may result in households tightening their purse strings this year, as ONS data reveals that retail spending is below pre-pandemic levels in October.
Ian Nicholas, Global Managing Director at Reed, said:
“For many this year, the effect of rising costs is going to dampen the festive cheer. While salaries are on the rise, they’re not keeping up with surging inflation rates and for families across the UK, particularly those on a lower income, that’s understandably causing extra financial strain.
“It’s clear that people are feeling the real effect of inflation and rising prices and starting to worry about their Christmas spending. Their salaries aren’t going as far as they were last year, and difficult decisions are having to be made.
“As the government and Bank of England try and curb the effect of rising prices, people are less likely to be going on Christmas spending sprees, which may well hit retailers.
“However, right now, despite predictions of a long recession ahead, the jobs market remains fairly buoyant, with many companies still hiring and most sectors still experiencing a shortage of candidates. Therefore, there are still opportunities for people wanting to find new jobs to improve their pay packets.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
