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4h ago

UK Unemployment Climbs to 4.8% as Wage Growth Stays Elevated

Stubborn pay growth is narrowing the Bank of England’s room to cut rates soon.

People walk past the Bank of England in London's financial district, London, Britain, 17 July 2023. REUTERS/Rachel Adams
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Overview

  • ONS figures for the three months to August show regular pay growth easing to 4.7% while total pay including bonuses rose to 5.0%.
  • Job vacancies fell by 9,000 to 717,000 in July to September, marking a 39th consecutive quarterly decline even as the ONS notes early signs of levelling off.
  • HMRC payroll data were revised to a 10,000 rise in August, but an early estimate points to a 10,000 fall in September to about 30.3 million, with the ONS stressing these numbers can be revised.
  • The ONS says the latest uptick in unemployment was driven mostly by younger people, with record numbers of over‑65s in work.
  • Analysts say sticky headline pay growth keeps pressure on policymakers, complicating prospects for near‑term rate cuts and adding fiscal strain ahead of Chancellor Rachel Reeves’s 26 November Budget.