UK unemployment stable; inflation hits wages again — data

LONDON — British unemployment held close to its historical low but wages continue to be outstripped by rampant inflation, official data showed on Tuesday.

The unemployment rate was unchanged at 3.7 per cent in the three months to the end of December compared with the three months to the end of November, the Office for National Statistics (ONS) said.

Wages excluding bonuses rose 6.7 per cent in the same period — but sank 2.5 per cent when inflation is taken into account.

"Overall pay... continues to be outstripped by rising prices," said ONS Economic Statistics Director Darren Morgan.

In recent months, strikes have multiplied across Britain — particularly in the communication, education, transport and health sectors — as workers protest at pay that has fallen in value.

A total of 843,000 working days were lost to walkouts in December, which was the highest since November 2011, the ONS added on Tuesday.

The news comes on the eve of official UK inflation data for January.

Inflation had slowed slightly to 10.5 per cent in December.

However, the rate remains close to a four-decade high, propelled by surging energy bills after key gas producer Russia invaded Ukraine almost one year ago.

Britain's economy narrowly avoided recession with zero growth in the fourth quarter, recent data showed.

But Finance Minister Jeremy Hunt has warned it is "not out of the woods yet", particularly where inflation is concerned.