{
  "id": 1655466,
  "title": "UK wage growth holds at 3.5% as labour market weakens",
  "url": "https://urgent.news/2026/08/18/uk-wage-growth-holds-at-3-5-as-labour-market-weakens",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-18T06:38:08.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economic-indicators/uk-wage-growth-holds-at-35-as-labour-market-weakens-4864362"
  },
  "original_language": "en",
  "account": "UK wage growth remained steady at 3.5% in the second quarter of 2026, with inflationary pressures unlikely to arise, according to newly released labour market statistics. The unemployment rate climbed to 4.9% in June, up from 4.8% in May, while the single-month unemployment rate saw a steeper increase from 4.6% to 5.4%. Employers saw a decline in PAYE employment, with 13,000 fewer jobs in July, following a similar drop in June that was initially reported at 4,000. The overall employment level fell by 0.3% compared to a year ago.\n\nJob vacancies also decreased, falling from 711,000 in the three months to June to 707,000 in the same period in July. Average earnings, including bonuses, slowed to 4.1% in June from 4.4% in May, a revision up from the previous 4.3%. This modest increase in wages was driven entirely by the public sector, with pay rising from 5.5% to 6.1%. In contrast, the private sector experienced a slowdown, with regular pay declining from 2.9% to 2.8%.\n\nAnalysts from Capital Economics noted that the weak labour market does not bode well for second-round inflation effects and anticipate that the Bank of England will maintain the current interest rate of 3.75%.",
  "summary": null,
  "key_points": [
    "UK wage growth remained steady at 3.5% in Q2 2026",
    "Unemployment rate climbed to 4.9% in June, up from 4.8%",
    "Job vacancies decreased by 13,000 in July, overall employment fell 0.3%"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}