Inflation has fallen to 8.7 percent, but millions of workers are likely to still be struggling with the cost of living.
This is according to Aspire’s research which showed that 38 percent of workers have not received a pay rise in the past year, despite inflation reaching a 41-year high in 2022.
A study put to 918 workers by Aspire at the end of Q1 2023 shows that as many as 38 percent of people have not received a pay rise in the past 12 months. Of those who have had their salary increased in the last year (62%), 41% had it raised by up to 5 percent, which falls still short of the revised inflation rate of (8.7%).
This pay stagnation has contributed to the rise in the number of people currently searching for a new job. In Q1 of 2023, two-thirds (65.6%) of workers said they were seeking a new role.
Commenting on inflation and the impact it’s having on the jobs market, Aspire’s Global MD Terry Payne, said:
“Make no mistake, the revised rate of inflation is a good thing. The soaring cost of living has made it challenging for many people to pay their bills and businesses to keep their doors open. So this will give employers and employees a much-needed boost at a critical time.
“We aren’t out of the woods yet though. Falling inflation points towards an economic recovery, but the cost of living is still high. And in many cases, workers haven’t received a pay rise in the past year, meaning they’re a lot worse off.
“The result of this is more people exploring their options jobs-wise. The good news is that there are well over a million job vacancies in the UK, so if you’re looking for a new role there are plenty of opportunities.”
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 the 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.