UK wage growth slows to weakest level since May 2022
Wage growth in the UK has slowed to its weakest pace since May 2022, signaling a stabilising labour market, according to official data from the Office for National Statistics (ONS).
Average weekly earnings, excluding bonuses, rose 4.7% in the June–August period compared with a year earlier, slightly below the 4.8% increase recorded in the three months to July, News.Az reports, citing Reuters.
In the private sector, closely monitored by the Bank of England (BoE), earnings excluding bonuses increased 4.4% in the three months to August, down from 4.7% in the previous quarter.
Payroll data showed a modest increase of 10,000 employees between July and August – the first significant rise since October last year – before a preliminary drop of 10,000 in September.
“After a long period of weak hiring activity, there are signs that the falls in payroll numbers and vacancies are now levelling off,” said Liz McKeown, ONS director of economic statistics.
Some BoE officials remain cautious, warning that labour market pressures may still contribute to inflation, potentially delaying further interest rate cuts. Last month, the BoE held its policy rate at 4%, with investors only expecting another cut as late as April 2026.
Policymaker Megan Greene noted that the impact on the jobs market from Finance Minister Rachel Reeves’ increase in employers’ social security contributions appears to have largely passed.
The UK unemployment rate rose slightly to 4.8% in the three months to August, though ONS officials said the survey underpinning the figure remains subject to refinement.
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