UK Wage Growth Eases but Remains Above Inflation

Despite a slowdown in wage growth to its lowest level in over a year, real wages continue to outpace inflation, reflecting a resilient labor market.

Wage growth in the UK fell to 6.2% in the quarter to December, the slowest since October 2022, yet still exceeds inflation.
Real wages, adjusted for inflation, rose by 1.9%, marking the highest increase since summer 2019, excluding pandemic years.
The unemployment rate dropped to 3.8% in the final three months of 2023, the lowest since November to January 2023.
Job vacancies declined for the 19th consecutive month, but the labor market remains largely resilient.
Economists caution that the official unemployment rate may not fully capture labor market tightness, affecting Bank of England's interest rate decisions.