HUNDREDS of people joined company payrolls in Dorset last month, the latest figures show.

Chancellor Rishi Sunak said an increase in payrolled staff across the UK was proof that the jobs market was “thriving”, but figures show wages are struggling to keep up with the increasing cost of living.

Office for National Statistics data shows an estimated 150,404 people in Dorset were on company payrolls in December – 555 more than in November.

The figure was up from 144,713 in December 2020 and was above pre-pandemic levels – 149,727 workers were recorded on company payrolls in December 2019.

The data shows that the median monthly salary for payrolled workers in Dorset rose from £1,829 in November to £1,841 at the end of the year.

However, with inflation hitting 5.1 per cent in November, it means real wages failed to keep up with the rising cost of living for the first time since July 2020.

The ONS cautioned the payroll figures, which do not include the self-employed, are early estimates which can be revised in future months.

Separate figures published by the ONS also show in the Dorset local authority area there was a fall in the number of people claiming unemployment benefits last month.

Around 5,810 people were on out-of-work benefits as of December 9, down by 3,195 from the month before.

It meant 2.8 per cent of the area's working population sought support in December.

The figures include those aged 16 to 64 on Jobseeker’s Allowance and some Universal Credit claimants, who are unemployed and seeking work or employed but with low earnings.