A key measure of jobs growth declined in August, and wage increases lost momentum, as official figures suggest the UK labour market is cooling.
The Office for National Statistics (ONS) said the monthly payrolls across the economy fell by 8,000 in August to 30.3 million July’s figures were also revised downward, showing a decrease of 6,000 jobs, compared to the previously estimated 8,000. Over the past year, payrolls have shrunk by 127,000.
These figures align with recent private sector surveys that have highlighted weakening demand for workers in recent months.
The ONS also noted that the unemployment rate remained unchanged at 4.7% in the three months to July.
Wage growth also showed signs of slowing with average weekly earnings excluding bonuses eased from 5% to 4.8%. Including bonuses, wage growth rose by 4.7%.
Economists and the Bank of England closely monitor wage trends as a key signal for inflationary pressures. The Bank is expected to keep interest rates steady at 4% this week.
Markets anticipate rates could remain unchanged for the rest of the year, as a majority of the Bank’s Monetary Policy Committee continues to prioritise inflation control over concerns about a softening jobs market.
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