Good morning.
UK workers are flocking back to the labour market at the fastest pace since the pandemic began as the cost-of-living crisis takes its toll.
The outbreak of Covid sparked a surge in people leaving the workforce, sparking widespread labour shortages that have dogged the economy ever since.
But the number of economically inactive people decreased by 0.4 percentage points – or 144,000 between March and May – the biggest drop since the pandemic began. Employment surged by 296,000.
It comes as soaring inflation puts ever more pressure on household budgets, with real wages still falling at the fastest pace on record.
Adjusted for inflation, regular pay excluding bonuses dropped 2.8pc between March and May – the biggest decline since records began in 2001. With bonuses included, workers were still 0.9pc worse off.
Inflation currently stands at a 40-year high of 9.1pc and is due to push even higher when the latest data is released tomorrow, before peaking above 11pc later in the year.
