UK wage growth 3.5% in the second quarter

In the second quarter, Britain's wage growth slowed to 3.5%, according to official data released on Tuesday. Private sector regular earnings rose by 2.8% in annual terms, marking the weakest growth since October 2020. This figure matched the Bank of England's forecast, but it led to a slight decline in the value of the pound. The unemployment rate remained steady at 4.9%, slightly higher than economists' expectations.

The number of job vacancies decreased to 707,000 in July, the lowest since April 2021, though excluding pandemic-related figures, they are at their lowest since late 2014. Andy Burnham's appointment as prime minister last month did not significantly boost the labour market, which is now showing signs of weakening momentum, according to economists.

Employment growth in the second quarter was only 83,000, much lower than the forecast of 129,000. Despite this, overall earnings growth, excluding bonuses, was 3.5% in the second quarter, with public sector pay growth contributing to this increase. The Bank of England is monitoring whether the energy price increase from the Iran conflict will lead to sustained inflation pressures.