UK wages are growing at the fastest rate for more than 20 years, but are still lagging behind the pace of the cost of living.

A slight increase in unemployment is also reported, BNR informs.

Wages rose 5.7% in the year to September, the fastest rise since 2000, excluding the pandemic period when people got big raises when they returned to work after being laid off on forced leave.

However, when the wage increase is equated to the rates of price growth, a decrease of 2.7% is reported.

The cost of living is currently at its highest rate in 40 years, partly because of the war in Ukraine.

Energy and food prices have skyrocketed, many people are struggling to pay their bills.

Unemployment in the UK rose slightly in the last quarter to 3.6%.

Although this is close to a 50-year low for this indicator, the Bank of England has warned that unemployment will almost double by 2025 as the UK goes through a severe recession.

On Thursday, Finance Minister Jeremy Hunt will outline his plans to get the economy back on track, with spending cuts and tax rises expected.

Today's edition of The Times newspaper says that Hunt and Prime Minister Sunak will announce a significant increase in the national wage and direct new payments to meet the living costs of the poorest households.

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