UK wage growth edges down as labour market eases
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UK wage growth slowed only marginally in the three months to August, according to official data that will offer the Bank of England limited reassurance that pressures in the labour market are easing.
The Office for National Statistics said on Tuesday that average total pay was 8.1 per cent higher over the three month period than a year earlier, down from a growth rate of 8.5 per cent the previous month, but still close to record highs. Regular pay growth, excluding bonuses, slowed from 7.9 per cent to 7.8 per cent.
The agency has delayed the release of key data on employment and labour force participation, which are usually published at the same time as the wage figures, because of problems with data collection.
The ONS also published figures for payrolled employment, which are drawn from HM Revenue & Customs records, as well as data on vacancies. These suggest hiring has continued to slow and payrolled employment remained steady over the summer.
“Wage growth has passed its peak, but we suspect it will fall only gradually from here,” said Ashley Webb, at the consultancy Capital Economics, which expects the BoE to hold interest rates at 5.25 per cent for most of next year to squeeze inflationary pressures out of the economy.
Chancellor Jeremy Hunt said it was “good news” that wages were growing in real terms again, underlining the need to redouble efforts to bring down inflation — which stood at 6.7 per cent in August.
Summarize this content to 100 words Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.UK wage growth slowed only marginally in the three months to August, according to official data that will offer the Bank of England limited reassurance that pressures in the labour market are easing.The Office for National Statistics said on Tuesday that average total pay was 8.1 per cent higher over the three month period than a year earlier, down from a growth rate of 8.5 per cent the previous month, but still close to record highs. Regular pay growth, excluding bonuses, slowed from 7.9 per cent to 7.8 per cent.The agency has delayed the release of key data on employment and labour force participation, which are usually published at the same time as the wage figures, because of problems with data collection.The ONS also published figures for payrolled employment, which are drawn from HM Revenue & Customs records, as well as data on vacancies. These suggest hiring has continued to slow and payrolled employment remained steady over the summer. “Wage growth has passed its peak, but we suspect it will fall only gradually from here,” said Ashley Webb, at the consultancy Capital Economics, which expects the BoE to hold interest rates at 5.25 per cent for most of next year to squeeze inflationary pressures out of the economy.Chancellor Jeremy Hunt said it was “good news” that wages were growing in real terms again, underlining the need to redouble efforts to bring down inflation — which stood at 6.7 per cent in August.
https://www.ft.com/content/01040c9f-95d9-45d0-9904-af9422323014 UK wage growth edges down as labour market eases