Britain’s labour market confirmed contemporary indicators of cooling in August as payroll employment fell once more and the tempo of wage progress slowed, in line with official figures.
The Workplace for Nationwide Statistics (ONS) mentioned the variety of folks on payrolls dropped by 8,000 to 30.3 million in August, following a revised fall of 6,000 in July. Over the previous 12 months, payrolls have contracted by 127,000.
The unemployment fee held regular at 4.7% within the three months to July, in step with forecasts, however the newest information underlines a slowdown in hiring as demand for employees continues to weaken. Vacancies fell by 10,000 to 728,000, extending a run of 38 consecutive months of declining job openings.
Pay progress additionally softened. Common weekly earnings excluding bonuses grew by 4.8%, down from 5%, whereas pay together with bonuses rose 4.7%. Economists and the Financial institution of England observe wage information intently as a key driver of inflation.
The figures come forward of the Financial institution of England’s newest coverage assembly this week. Charges are anticipated to stay unchanged at 4% after being minimize in August — the fifth discount in a yr. Market pricing suggests they may keep on maintain for the remainder of 2025, with policymakers signalling they’re prioritising the battle towards inflation regardless of proof of a cooling jobs market.
Inflation information due on Wednesday is forecast to point out annual worth progress of between 3.8% and three.9% in August, practically double the Financial institution’s 2% goal.
Liz McKeown, ONS director of financial statistics, mentioned: “The labour market continues to chill, with the variety of folks on payroll falling once more, whereas companies additionally informed us there have been fewer jobs within the newest interval.”
The mix of weaker hiring, falling vacancies and moderating pay progress will add to issues that the post-pandemic jobs increase has definitively run its course, with sectors from retail to development reporting sharp slowdowns in demand for employees.
