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Average wages in Mansfield and Ashfield have risen by less than 8 per cent as the cost of living crisis begins to bite and real wages continue to fall across the UK, new figures show.

The Trade Union Congress said new Prime Minister Liz Truss ‘must get pay rising’ ahead of a difficult winter with many households worried how they will make ends meet.

The latest ONS figures show median pay in Mansfield was £1,924 per month in August, up from £1,799 a year before, and £1,975 in Ashfield, up from £1,840.

It means wages have risen by 6.9 per cent in Mansfield and 7.3 per cent in Ashfield the last year, just as the cost-of-living crisis has begun.

Nationally, median monthly wages have risen by 6.5 per cent in the last year to £2,111 in August, but this still represents a real-terms pay cut thanks to soaring inflation.

Nationally, the median monthly wages have risen by 6.5 per cent in the last year to £2,111 in August, but this still represents a real-term pay cut thanks to soaring inflation.

Taking inflation into account, further ONS figures show real-term pay fell by 2.8 per cent year on year between May and July, the largest drop seen since records began in 2011.

Frances O'Grady, TUC general secretary, urged Mrs Truss to increase pay packets, including boosting the minimum wage, giving public sector workers a decent pay rise, and allowing unions to negotiate better compensation for working people.

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Greg Thwaites, research director at think tank Resolution Foundation, said the only ‘chink of light’ is the slight fall in inflation, which is still close to a 40-year high, but eased slightly to 9.9 per cent in August from 10.1 per cent in July.

It means pay packets might not shrink any faster, though they will not grow in the next year, he said.

Unemployment among those aged 16-64 also continued to fall, reaching its lowest point since 1974 at 3.7 per cent in the three months to July, separate ONS statistics outline.

In the East Midlands, it stood at 2.8 per cent, down from 4.5 per cent the year before.

Despite the fall in unemployment, economic inactivity rose to 21.7 per cent across the country and 21.9 per cent in the East Midlands.

Mr Thwaites said: “Instead of the cost-of-living crisis tempting people back into work, more people are exiting the jobs market altogether, primarily due to poor health.”

The Treasury declined to comment.

Cost-of-living crisis: Mansfield wages rise by less than 7% as inflation soars