Wage growth eases to lowest level in more than two years – ONS

UK earnings growth has fallen to its lowest level for more than two years amid further signs of a weakening jobs market, according to official figures.

The Office for National Statistics (ONS) said average regular earnings growth eased back to 4.9% in the three months to July, down from 5.1% in the previous three months.

This marked the lowest level since the three months to June 2022.

But earnings growth continues to outstrip inflation, as pay increased by 2.6% in the three months to August with Consumer Prices Index inflation taken into account.

The ONS data showed vacancies falling by 34,000 to 841,000 in the quarter to September, which is the lowest level since March to May 2021, while workers on UK payrolls also fell by 35,000 between July and August.

However, the UK unemployment rate unexpectedly eased back to 4% in the three months to August, down from 4.1% in the previous quarter, though the ONS said the estimate should be treated with caution given a low response rate to its jobs survey.

David Freeman, head of the ONS labour market and household division, said: “Pay growth slowed again, with last year’s one-off payments made to many public sector workers continuing to affect the figures for total pay.

“However, earnings continue to rise faster than inflation.”

“Vacancies have fallen once more, with most industries seeing a fall on the quarter,” he added.

Published: 15/10/2024 by Radio NewsHub