Wages in the public sector are growing at their fastest rate for 14 years, according to think tank, the Resolution Foundation.
It's important to note that the think tank is focusing on wages in real-terms, which includes the subtraction of inflation.
The Resolution Foundation says that wages in the private sector grew 3.6% in the three months to August. And with inflation floating around 0-0.1% in recent months, private sector workers have been left with the strongest real wage growth for 14 years.
Official figures from the Office for National Statistics (ONS), released on Wednesday, are expected to confirm the fastest growth since 2001.
Overall, the Resolution Foundation expects wage growth to be around 3%, when the squeeze on public sector workers is taken into account.
Laura Gardiner, senior policy analyst at the Resolution Foundation, said: “Workers across the UK are enjoying a much-needed mini-pay surge after a painful six-year squeeze. And while much of this growth is down to historically low inflation, there are welcome early signs too of a shift towards higher-paid job creation that could boost pay still further.”
Should the 14-year high figures be confirmed, it will come as a welcome boost following a sustained period of weak wage growth during 2014. Economists, including Bank of England deputy governor Ben Broadbent, have blamed the rise in low-skilled and low-wage jobs in areas like retail and hospitality.
In a speech recently, Mr Broadbent said: “During 2014, for example, it’s the fact that new jobs went to people with below-average qualifications and experience, and in lower-paid occupations, that depressed average pay growth.”
