Pound slides against dollar and euro; falling real wages mean ‘year of pain’ – as it happened

Sterling is hit by fears over slowing economy, tensions over Northern Ireland protocol, and push for new Scottish referendum

• Latest: Pound under pressure
• MPs grill airlines over transport chaos
• Which? Some airlines are blatantly breaking rules
• UK unemployment rate rose to 3.8% in Feb-April quarter
• Real regular pay fell 3.4% in year to April - worst since at least 2001

Regular real pay in the UK fell at the fastest rate in over two decades in April, as wages fell further behind rising prices.

In April alone, regular pay packets (excluding bonuses) shrank by 3.4% once you adjust for inflation (the ONS's preferred measure, CPIH).

The cost of living crisis is hitting hard with real regular wages falling more sharply this month than in any month this century.

We face a year of pain. The Chancellor has increased the help on offer and needs to prepare to do more. We also need an urgent focus on getting our economy moving again so living standards can rise.

Despite the tightest labour market on record, nominal pay is broadly flat meaning that rocketing inflation is leading to the largest cuts in real pay in at least two decades. The picture is particularly bad for public sector workers, with real pay falling by nearly 6% year on year.

At the same time while employment is starting to pick up, there's still a million people missing from the labour force compared to pre-pandemic trends - particularly older people, those with health conditions and overseas workers. The large rises in long-term ill health are particularly concerning, with a quarter of a million more people outside the labour force than before the pandemic.