By Jonathan Davies

Wages in the UK are growing in real-terms, according to the Office for National Statistics (ONS).

The ONS said wages excluding bonuses were up 1.6% in the August-October quarter, with pay including bonuses up 1.4%.

It's the first time in six years that both measures of pay have grown faster than the rate of inflation, which was 1.3% in October.

Growth is expected to be even stronger at the end of 2014, after inflation dropped to 1%.


The figures came as the ONS revealed that the number of unemployed people fell by 63,000 to 1.96 million during the period.

The ONS said the unemployment rate stayed at 6%, matching its lowest level in six years. But it was slightly above forecasts of 5.9%.

In a tweet, Prime Minister David Cameron said: "Employment is at a record high & average earnings are rising faster than inflation. More to do, but our long term economic plan is working."

Rachel Reeves, the shadow secretary for work and pensions, said: "Long-term youth unemployment has risen over the last few months. So there's still much more that the government needs to do."

Neil Carberry, CBI Director for Employment and Skills, said: “As we come to the end of the year, it’s good news that unemployment continues to fall, as jobs are being created. It’s good to see even more people working full-time.

“We are starting to see the first signs of real pay growth picking up, which will have given households an encouraging boost in the run up to Christmas.”

John Allan, National Chairman of Federation of Small Businesses (FSB) said: “These latest figures show the jobs market remains vibrant, and we know that small firms expect to continue to create employment into 2015. After a prolonged period where real wages have been eroded, the second consecutive quarter of wage growth above inflation is a particularly welcome feature of these latest results.”

The number of people claiming Jobseeker's Allowance in November fell by 6,900 to 900,100.

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