Wednesday, June 19, 2024

UK pay grows at 5.9% despite slowing jobs market

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UK wage growth remained strong in the three months to April as a rise in the minimum wage boosted pay packets, despite a slowing jobs market, official data showed on Tuesday.

The Office for National Statistics said annual growth in average weekly wages, including bonuses, remained steady at 5.9 per cent, unchanged from an upwardly revised figure of 5.9 per cent for the three months to March.

Excluding bonuses, annual growth of 6 per cent in average wages was also unchanged from the three months to March, in line with analysts’ expectations.

The figures are likely to reinforce the majority view on the Bank of England’s monetary policy committee that more evidence of inflationary pressures easing is needed before cutting interest rates.

But the ONS said there were also signs of the labour market cooling, with a slight decline in the number of vacancies and in the number of payrolled employees and an uptick in claims for jobless benefits.

The ONS’ headline measures of unemployment and employment remain less reliable than usual, due to problems with the labour force survey that underpins them.

This is a developing story

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