UK Unemployment Falls Slightly as Wage Growth Slows
The UK’s unemployment rate has decreased slightly, according to recent figures. Unemployment was recorded at 4.2% for the three months ending in June, down from 4.4% in the previous quarter.
However, wage growth has continued to decelerate, rising at an annual rate of 5.4%—the slowest pace in nearly two years, as reported by the Office for National Statistics (ONS). Liz McKeown, the ONS’s Director of Economic Statistics, noted on the BBC’s Today programme that despite the drop in unemployment, the job market appears to be “cooling,” with high numbers of vacancies, redundancies, and individuals not actively seeking work.
The ONS has advised caution regarding the current jobs data, as the Labour Force Survey, which provides these statistics, has seen a lower number of respondents than usual over the past year.
Chancellor Rachel Reeves commented that while the latest figures are a positive sign, there is still work to be done to support people into employment. She mentioned that the upcoming Budget will address spending, welfare, and tax decisions to strengthen the economy and improve conditions across the UK.
