"Today's latest snapshot of the UK jobs market shows what is becoming a familiar pattern: a gradual slowdown in hiring, rising unemployment, yet with wage growth still uncomfortably high for policymakers. Whether because of Rachel Reeves's 25bn national insurance increase, AI-related disruption or Donald Trump's tariffs perhaps all three companies seem to be cautious about taking on staff. In the July to August period, the number of vacancies in the economy, was down by 119,000 on a year earlier."
"Bank of England policymakers, who meet on Thursday to decide interest rates, have been waiting for this slowdown in the labour market under way for many months now to bring wage inflation under control. Yet so far that has been a slow process, and wage growth remained relatively robust, at an annual rate of 4.8% excluding bonuses in the three months to July, according to the ONS."
Vacancies fell by 119,000 year-on-year in July–August, signalling a gradual slowdown in hiring as companies remain cautious about taking on staff. The labour market shows 2.3 unemployed people per vacancy, up from 2.2, and the unemployment rate rose to 4.7%, the highest in four years. Employment rose as economic inactivity fell to 21.1%, down 0.8 percentage points year-on-year, yet many returning to the labour market are seeking work rather than entering employment. Wage growth stayed elevated at 4.8% annually excluding bonuses in the three months to July, sustaining inflationary pressures and shaping Bank of England decisions.
Read at www.theguardian.com
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