Wages rise by more than expected but unemployment also grows, Office for National Statistics figures show
Wage growth picked up by more than expected over the three months to September, according to official figures also showing a rise in the jobless rate.
The Office for National Statistics (ONS) said average weekly earnings, excluding bonus payments, rose at an annual rate of 5.7% during the three months to September.
That was up from the 5.4% figure last month.
Economists polled by Reuters had expected an increase of 5.5%.
Nevertheless, at 5.7% it remains well below the official rate of inflation at 10.1%.
Real wage growth was 3.7% weaker in September when the effects of inflation were included, the ONS said.
The unemployment rate rose to 3.6% from 3.5% as the number of people in employment fell by 52,000.
Darren Morgan, ONS director of labour and economic statistics, said of the shift: “The proportion of people neither working nor looking for work has risen again.
“Since the onset of the pandemic, this shift has largely been caused by older workers leaving the labour market altogether, but in the most recent quarter the main contribution has actually come from younger groups.
“August and September saw well over half a million working days lost to strikes, the highest two-month total in more than a decade, with the vast majority coming from the transport and communications sectors.
“With real earnings continuing to fall, it’s not surprising that employers we survey are telling us most disputes are about pay.”
The figures were released as the economy battles problems from the highest inflation for 40 years and the fallout from Trussonomics – namely the now largely reversed mini-budget of September.
Official figures last week showed the economy contracted during the third quarter of the year as the cost of living crisis hit demand, leaving the country on course for a prolonged but shallow recession, according to the Bank of England, which believes the jobless rate could hit 6.5%.
The Bank fears a shrinking labour market will add to inflation pressures, forcing it to raise Bank rate even as the economy heads into the expected recession.
The Truss government’s growth plan exacerbated problems as financial markets called into question the UK’s economic credibility, making imports more expensive through a collapse in the value of the pound.
Other implications included a rise in fixed-term mortgage costs, adding to households’ growing bill mountain.
Jeremy Hunt, the chancellor, will deliver his autumn statement to MPs on Thursday with little firepower to help alleviate the overall pain.
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‘Taxes will increase for everyone’
He told Sky News on Sunday that everyone faced higher taxes as the government, now led by Rishi Sunak, aims to take a more sustainable approach to the public finances.
It is believed the package will be designed to save about £50bn from annual borrowing in the medium term.
Mr Hunt said in reaction to the employment data: “Tackling inflation is my absolute priority and that guides the difficult decisions on tax and spending we will make on Thursday.
“Restoring stability and getting debt falling is our only option to reduce inflation and limit interest rate rises.”
Shadow chancellor Rachel Reeves said: “Today’s figures press home the knock-on impact of 12 years of Tory economic mistakes and low growth.
“Real wages have fallen again, thousands of over 50s have left the labour market and a record number of people are out of work because they’re stuck on NHS waiting lists or they’re not getting proper employment support.
“What Britain needs in the autumn statement on Thursday are fairer choices for working people, and a proper plan for growth.”
UK
Crown Prosecution Service acknowledges it twice failed to prosecute Mohamed al Fayed over sex abuse claims
The Crown Prosecution Service (CPS) has acknowledged it had twice failed to bring charges against Mohamed al Fayed for sexual abuse.
The former Harrods owner, who died last year at the age of 94, was described as a “monster” earlier this week by lawyers representing alleged sexual abuse victims.
Women say he raped and sexually assaulted them while they worked at the luxury department store, and accused him of “cherry-picking” women to be brought to his executive suite.
As the legal team said they have heard more than 150 inquiries into Fayed’s alleged crimes, a CPS spokesperson has now said evidence against the Egyptian businessman was provided to prosecutors by the Metropolitan Police twice.
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‘I was terrified’: Alleged victim speaks out
In 2008, Fayed was accused of indecent assault against a 15-year-old girl, which he denied. The CPS did not prosecute the case when it was presented in 2009 over conflicting evidence.
He was then alleged to have raped a woman in 2013, which was reinvestigated by police in 2015 but did not lead to any charges.
While the CPS did review both files, the spokesperson said: “To bring a prosecution the CPS must be confident there is a realistic prospect of conviction – in each instance, our prosecutors looked carefully at the evidence and concluded this wasn’t the case.”
It marks the first time the service acknowledged the 2015 investigation. The CPS also provided the Met Police with early investigative advice for Fayed in 2018, 2021 and 2023.
Full evidence was never received for these instances and the police took no further action.
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‘Mohamed al Fayed brainwashed me’
It comes after the victims’ legal team confirmed on Saturday they had received “over 150 new inquiries” after a BBC documentary on Fayed aired.
It also follows the former head of royal protection saying he warned the Royal Family about Fayed’s reputation before Princess Diana took Prince Harry and Prince William on holiday with the businessman’s son.
Dai Davies told Sky News people were aware of the Egyptian businessman’s reputation as far back as the 1990s, and said: “This was a man who I would be concerned [about] if a relative of mine was going on holiday with him, let alone the future king and his brother and their mother, Princess Diana.”
Princess Diana, Prince William (right) and Prince Harry (left) in Saint Tropez on 14 July 1997. File pic: AP
He added he was “horrified” before the late princess went on holiday with Fayed and his wife to their residence in St Tropez in July 1997.
“I was aware that he had tried very hard to ingratiate himself with the Royal Family,” he said, “and obviously knowing, as I did, the reputation he was alleged [to have] then, I was concerned, and I took the opportunity to inform the Royal Family.”
Buckingham Palace told Sky News it had no comment on the allegations.
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Fulham FC, which was owned by Fayed between 1997 and 2013, also said it is “deeply troubled” by the dozens of “disturbing” sexual abuse allegations against the businessman.
Harrods said in a statement on Thursday it was “utterly appalled” by the allegations of abuse and apologised to Fayed’s alleged victims.
The department store has also set up a page on its website inviting former employees to come forward if they have allegations.
Anthony Joshua missed out on the chance to become a three-time heavyweight world champion after he was stopped by British rival Daniel Dubois in the fifth round.
Dubois, 27, knocked down Joshua towards the end of the opening round with an overhand right to the 34-year-old’s chin.
The IBF heavyweight champion then dropped Joshua at the end of round three and twice in the fourth.
A right hook ended the fight with a knockout for Dubois’ first defence of the title.
The fighters went toe to toe at London’s Wembley Stadium in front of a record 96,000 fans.
The 34-year-old was knocked down four times in the opening four rounds, and knocked out in the fifth. Pic: Reuters
Daniel Dubois became IBF champion after Oleksandr Usyk vacated the title. Pic: Reuters
‘We came up short’
Minutes after retaining the IBF championship, Dubois shouted to the crowd “are you not entertained?” before saying: “I’m a gladiator, you know?
“I’m just a warrior to the bitter end. I’m just ready to go. I want to go to the top level of this game and reach my potential. God bless you all.”
Joshua said the loss would not stop him from rebuilding despite admitting “we came up short”.
“You know I’m ready to kick off in the ring, but I’m going to keep my cool, keep very professional, and give respect to my opponent,” he said.
“I’m always saying to myself I’m a fighter for life… We keep rolling the dice. I had a sharp opponent, a fast opponent and a lot of mistakes from my end, but that’s the game.”
Dubois’ victory has sent a message to the whole heavyweight division
Daniel Dubois will feel like he has fulfilled his destiny here at Wembley. His father has trained him to be a champion boxer since he was tiny.
He held the IBF belt, but he has gone in there tonight and defended it in spectacular fashion – he is now in every conversation going forward.
What now for AJ? Can he face rebuilding? And will he even want to?
The Wembley ring walk is notoriously long, and Dubois looked nervous – but so did Joshua, who has done this many times before in front of a full house.
Perhaps he was thinking of what was at stake – the chance to be a three-time heavyweight champion of the world.
But 27-year-old Dubois holds the belt and was keen to prove he was a worthy champion quickly.
Many wondered if Dubois would freeze on the biggest stage: Question asked and answered emphatically.
It was a crushing defeat for Joshua – most were not expecting such a one-sided victory.
Dubois will now most likely take on the winner of Fury v Usyk 2 for all the belts. But the manner of his victory has sent a message to the whole heavyweight division.
Pic: PA
Pic: PA
Hearn: AJ will want rematch
Promoter Eddie Hearn then said “it was the first round” where Joshua lost, “after that he was fighting on heart and desire”.
Hearn added: “When you are in there with a massive puncher this is what can happen. He never stopped trying to get up, even when he couldn’t get up.
“Daniel deserves credit, he’s a real world champion. Congratulations to him… I’m sure [Joshua will] exercise that rematch clause, it’s a given, it’s a dangerous fight because he’s growing in confidence all the time but he’ll believe he can beat him.”
Pic: Bradley Collyer/PA Wire
British champion Dubois, who before tonight had never fought at Wembley, was elevated to the IBF title holder after Oleksandr Usyk relinquished the belt.
Joshua outweighed Dubois by four pounds, despite a career-heaviest weight for his rival, ahead of the fight.
Among those watching was Tyson Fury, the former WBC heavyweight champion, who took a ringside seat.
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Liam plays Oasis hits
Fury is set to fight Usyk for the other three titles in a rematch on 21 December.
Ahead of the fight, Liam Gallagher played some of Oasis’ biggest hits to the sold-out crowd.
Pic: PA
Pic: Reuters
The 52-year-old frontman walked on to a massive cheer and said “yes Wembley vibes in the air,” before launching into Rock ‘N’ Roll Star, Supersonic and Cigarettes & Alcohol.
He and Noel Gallagher will play Wembley for their first of seven reunion shows at the stadium on 25 July – 307 days away.
Other famous faces ringside were Irish MMA fighter Conor McGregor, former boxer Ricky Hatton, Spice Girl Emma Bunton and Love Island presenter Maya Jama.
UK
Mohamed al Fayed: Former royal security head says he warned Royal Family before Diana went on holiday with businessman
The former head of royal protection says he warned the Royal Family about Mohamed al Fayed’s reputation before Princess Diana took her sons on holiday with him.
The former Harrods owner, who died last year at the age of 94, was described as a “monster” earlier this week by lawyers representing 37 alleged sexual abuse victims.
The women say he raped and sexually assaulted them while they worked at the luxury department store, prowling the shop floor and “cherry-picking” women to be brought to his executive suite.
Now, Mr Davies says people were aware of the Egyptian businessman’s reputation as far back as the 1990s, and that he raised concerns about him to the Royal Family.
Princess Diana on the quay of the residence of Mohamed al Fayed in Saint Tropez on 20 July 1997. File pic: AP
“This was a man who I would be concerned [about] if a relative of mine was going on holiday with him, let alone the future king and his brother and their mother, Princess Diana,” Dai Davies told Sky News.
Mohamed al Fayed during a match at Craven Cottage stadium in 2013: File pic: PA
In July 1997, a month before she died, Princess Diana went on holiday with Fayed and his wife to their residence in St Tropez.
She took the two young princes with her – a holiday Prince Harry described as “heaven” in his 2023 memoir Spare.
“I was horrified because I was aware of some of the allegations even then that were going around,” said Mr Davies.
“I was aware that he had tried very hard to ingratiate himself with the Royal Family and obviously knowing, as I did, the reputation he was alleged [to have] then, I was concerned, and I took the opportunity to inform the Royal Family.”
Princess Diana, Prince William (right) and Prince Harry (left) in Saint Tropez on 14 July 1997. File pic: AP
Mr Davies says he was told: “Her Majesty is aware.”
“The rest is history,” he said.
Buckingham Palace told Sky News it had no comment on the allegations.
Fulham ‘deeply disturbed’ by allegations
Fulham FC, a football club that was owned by Fayed between 1997 and 2013, has said it is “deeply troubled” by the dozens of “disturbing” sexual abuse allegations against the businessman.
The Premier League club also said it is “in the process of establishing whether anyone at the club is or has been affected” by this alleged behaviour.
Mohamed al Fayed waves a Fulham scarf in front of supporters in 2012. Pic: Reuters
However, Gaute Haugenes, who managed the club’s women’s team between 2001 and 2003, told the BBC extra precautions were taken to protect female players from Fayed.
“We were aware he liked young, blonde girls. So we just made sure that situations couldn’t occur. We protected the players.”
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‘The door was locked behind me’
A former Harrods employee told Sky News she was summoned to Fayed’s apartment when she began working for the department store at 19 years old.
She was told the meeting was a “job review” before “the door was locked behind me”.
“I saw his bedroom door partially open – there were sex toys on view,” she said.
“I felt petrified. I perched myself at the very end of the sofa and then… my boss, the person I worked for, pushed himself onto me.”
Read more: ‘One of the worst cases of corporate sexual exploitation’
Harrods said in a statement on Thursday it was “utterly appalled” by the allegations of abuse and apologised to Fayed’s alleged victims.
The department store has also set up a page on its website inviting former employees to come forward if they have allegations.
Keep up with all the latest news from the UK and around the world by following Sky News
The legal team involved in a civil claim against Harrods for allegedly failing to provide a safe system of work for its employees said they aimed to seek justice for the victims of a “vast web of abuse”.
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