UK wages increase, while employment growth wanes

British wages in the three months to April outpaced forecasts, while employment growth slows, according to recent pay data.

UK Jobs Source: Bloomberg

UK pay outpaced forecasts in the three months to April, with new hire rates slowing, helping to keep unemployment rates at its lowest level since 1975, according to data from the Office of National Statistics (ONS) on Tuesday.

The data showed that total earnings, including bonuses, increased by 3.1% before adjusting for inflation, compared with the same period a year prior.

‘Overall, the labour market continues to be strong,’ ONS statistician Matt Hughes said.

UK employment remains highest on record

The UK employment rate was estimated at 76.1%, higher than a year earlier (75.6%) and the joint-highest on record.

The UK unemployment rate was estimated at 3.8%; it has not been lower since October to December 1974.

For February to April 2019, an estimated 1.30 million people were unemployed, 112,000 fewer than a year earlier and 857,000 fewer than five years earlier.

The UK labour market remains strong despite Brexit turmoil

The ONS data depicts a UK labour market that has remained strong in the face of political and economic uncertainty.

British wage growth and employment rates have remained relatively robust since the UK voted to leave the EU back in June 2016.

Official data showed that the UK economy shrank by 0.4% in April, its biggest monthly drop since 2016.


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