(Alliance News) - UK earnings growth has fallen back further amid mounting signs of a weakening jobs market, but wages are outstripping inflation at the fastest pace for more than two-and-a-half years, according to official figures.
The Office for National Statistics (ONS) said average regular earnings growth dropped to 5.7% in the three months to May – down from 6% in the previous three months and the lowest level since the quarter to September 2022.
With consumer prices index inflation taken into account, regular earnings rose by 3.2%, which is the highest since the three months to August 2021.
The ONS estimated that the rate of unemployment remained unchanged at 4.4% in the three months to May.
But it flagged further signals that the employment sector is cooling, with 30,000 fewer vacancies at 889,000 in the quarter to June.
Liz McKeown, ONS director of economic statistics, said: "Earnings growth in cash terms, while remaining relatively strong, is showing signs of slowing again.
"However, with inflation falling, in real terms it is at its highest rate in over two-and-a-half years.
"We continue to see overall some signs of a cooling in the labour market, with the growth in the number of employees on the payroll weakening over the medium term and unemployment gradually increasing.
"The number of job vacancies is down across most sectors, led by retail and hospitality. The total has now been falling for a full two years, though it remains above pre-pandemic levels."
By Holly Williams, PA Business Editor
Press Association: Finance
source: PA
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