Overview

• Average weekly earnings grew by 5.6% in the three months to February 2025, while wages excluding bonuses rose 5.9%, both below forecasted levels.
• Economists had predicted wage growth of 5.7% for average weekly earnings and over 6% for wages excluding bonuses, highlighting a slowdown in momentum.
• The wage data does not reflect the recent national minimum wage increase implemented on April 1, 2025.
• The unemployment rate remained stable at 4.4%, though the ONS cautioned against overinterpreting monthly unemployment figures due to reliability concerns.
• The slower-than-expected wage growth may reduce inflationary pressures, potentially influencing the Bank of England's future interest rate decisions.