Annual wage growth is the highest it has been in seven years with a 2.7 percent increase since 2007 according to the latest ONS Labour Market Statistics report.

The latest figures show a job market that is continuing to grow, with over 2.4 million more people in work in the private sector than in 2010. Annual private sector pay growth is also up by 3.3 percent.

Over 400,000 more people are in work compared with a year ago. Unemployment continues to fall and has decreased by nearly 350,000 over the same period, the lowest level since August 2008.

Employment Minister Priti Patel says:

“Today’s figures confirm that our long-term economic plan is already starting to deliver a better, more prosperous future for the whole of the country, with wages rising, more people finding jobs and more women in work than ever before.

The proportion of people claiming benefits is at its lowest point since 1975, down by 2.3 percent.

The government has taken action to reform the welfare system and support more people off benefits and back into work. The number of people claiming benefits has fallen by more than one million since 2010, which is the lowest level since 1982.

85 percent of the rise in employment has been for full-time employment, the UK has seen the biggest rise in employment than any other G7 economy over the last year.

Long-term unemployment has fallen to its lowest level in more than five years, which has been supported by the Work Programme.

Neil Carberry, CBI director for employment and skills, says:

“These figures provide more evidence that the wage squeeze has eased, with private sector pay increasing almost as fast as it was before the crisis. At the same time, firms are creating more jobs.

“If we are to deliver sustainable higher wage growth, we need to see a rise in productivity. That means businesses investing in skills, and the Government helping firms innovate by supporting investment in next month’s Budget.

“These figures are testament to the strength of our flexible labour market, which has helped British firms create a strong number of permanent full-time jobs.”

See the infographic from the Office for National Statistics below for more information

labourmarketinfographicjune15