The UK saw a slight uptick in its unemployment rate during the third quarter, while wage growth remained robust, despite a decline in job vacancies indicating easing wage pressures, according to official data released on Tuesday.
The Office for National Statistics reported that the unemployment rate climbed to 4.4 percent for the period from September to November, aligning with expectations, and up from 4.3 percent during the preceding three months leading to October.
Average earnings, excluding bonuses, increased by 5.6 percent over the three months to November compared to the previous year, marginally surpassing the projected 5.5 percent growth. Including bonuses, earnings rose by 5.6 percent year-on-year, matching forecasts.
In December, the claimant count remained unchanged at 4.6 percent, though the number of individuals claiming unemployment benefits rose by 7,000 from the month prior. Payrolled employment saw a decrease of 47,000 from the previous month and dropped by 8,000 compared to the previous year, totaling 30.3 million in December.
During the December quarter, job vacancies fell by 24,000 from the previous quarter, totaling 812,000, marking a decline for the 30th consecutive period.
According to James Smith, an economist from ING, ample evidence suggests that the labor market is continuing to cool. He noted that policymakers seem poised to gradually reduce rates, potentially at a quicker pace than anticipated by current market expectations.
Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, expressed concerns about the labor market remaining challenging for many businesses. She highlighted ongoing wage growth as companies vie for skilled workers, underscoring concerns over a significant increase in employment costs anticipated in April.
