UK Wage Growth Surges But Jobs Market Cools

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WAGE GROWTH,JOBS MARKET,INFLATION

UK wage growth has risen for the first time in over a year, but signs point to a cooling jobs market.

Official figures show regular earnings growth jumped to 5.2% in the three months to October, up from 4.9% in the previous three months. UK wage growth has risen for the first time in more than a year, but signs point to an ongoing cooling off in the jobs market amid mounting uncertainty following recent Budget measures. Official figures show regular earnings growth jumped to 5.2% in the three months to October, up from 4.

9% in the previous three months and the first time it has risen since August last year. Earnings growth also outstripped inflation by 3% in the three months to October, with Consumer Prices Index (CPI) inflation taken into account. The Office for National Statistics (ONS) estimated the number of people on UK payrolls fell by 35,000 to 30.4 million between October and November, although this is subject to revision.Figures showed the unemployment rate remained unchanged at 4.3% in the three months to October, although the ONS added a note of caution given changes to the jobs survey. It comes as there are fears over an impact on hiring and jobs after the Budget announced steep increases in employers’ national insurance contributions and a minimum wage rise next year. ONS director of economic statistics Liz McKeown said: “After slowing steadily for over a year, growth in pay excluding bonuses increased slightly in the latest period, driven by stronger growth in private sector pay.” On payrolls, she added: “We have seen annual growth rates continue to slow, showing a consistent trend with our latest jobs data from employers. “The number of job vacancies has also fallen again, though the total remains a little above where it was before the pandemi

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