UK jobs market stays soft before BoE rate call

London, September 15 - Britain's labor market continues to struggle, with job vacancies hitting a four-year low and wage growth remaining stagnant, according to official data released on Tuesday ahead of the Bank of England's interest rate decision. Average weekly earnings, excluding bonuses, rose by 3.5% over the three months leading up to July compared to the same period in 2025, as reported by the Office for National Statistics.

However, job vacancies in the three months ending in August dropped to 702,000 from 706,000 in the previous quarter, the lowest figure since April 2021. Small businesses cited the high cost of employment as a key factor. The unemployment rate remained unchanged at 4.9% over the same period. The Bank of England is closely monitoring the potential impact of rising energy prices, driven by the Iran conflict, on wage growth and inflation in the UK.

Some investors are pricing a one-in-three chance of a quarter-point interest rate increase by the Bank of England on Thursday, with a rate hike expected at the next Monetary Policy Committee meeting in November and another in December.