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Wage Growth Hits Lowest Since 2020 Amid Rising Inflation

3/20/2026

45 10 Full Breakdown

Summary

Story summary

Wage growth slowed to 3.8% in the three months to January, the lowest since late 2020.
The Bank of England (BoE) is expected to maintain interest rates as inflation pressures rise from higher energy costs linked to the Middle East conflict.
Despite zero economic growth in January, payroll employment rose by 20,000, marking three consecutive monthly increases.
Unemployment remained at 5.2%, with youth unemployment at 16.0%.

History

Historical Context

The Great Recession, which began in December 2007 and officially ended in June 2009, resulted in the loss of approximately 8.7 million jobs in the U.S. and peaked unemployment at 10% by October 2009. The Bank of England responded by lowering interest rates to stimulate growth. Today, wage growth remains sluggish at 3.8%, and youth unemployment is notably high at 16%, reflecting ongoing recovery challenges.

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Story summary

Wage growth slowed to 3.8% in the three months to January, the lowest since late 2020.
The Bank of England (BoE) is expected to maintain interest rates as inflation pressures rise from higher energy costs linked to the Middle East conflict.
Despite zero economic growth in January, payroll employment rose by 20,000, marking three consecutive monthly increases.
Unemployment remained at 5.2%, with youth unemployment at 16.0%.

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