UK wages were up by around 2.5 percent in the three months through May, according to the Office for National Statistics, in line with market expectations.
The 2.5 percent rise was the slowest growth recorded over the last six months, down from 2.6 percent seen the period previously. Pay excluding bonuses came in at 2.7 percent, in line with analyst forecasts, and above the inflation rate of 2.4 percent.
The unemployment rate remained steady at 4.2 percent, with over 137,000 jobs were being created in the three months to May.
“We’ve had yet another record employment rate, while the number of job vacancies is also a new record,” said ONS statistician Matt Hughes.
“From this, it’s clear that the labour market is still growing strongly.”
However, Ben Brettell, senior economist at Hargreaves Lansdown, said:
“All in all, these numbers don’t alter the economic picture of anaemic growth, a relatively tight labour market and under-control inflation,” he said.
“Markets are still expecting the Bank of England to raise interest rates in August. But given the increasingly uncertain climate, I think there’s a real chance policymakers will sit on their hands and wait for firmer signals the economy is on the right track before risking raising borrowing costs.”
