UK unemployment rate rises and wage growth slows again – what it means for your money
THE UK rate of unemployment has risen while wage growth has eased, according to the Office for National Statistics (ONS).
Unemployment rose to 4.3% between July and September, from 4% for the previous three months.
Official figures released this morning have revealed that basic pay is still growing but at its slowest rate in two years.
Pay excluding bonuses stood at 4.8% in the three months to September.
Growth was previously lower than this in April to June 2022, when it was 4.7%.
While, including bonuses, it was 4.3%. According to the ONS total growth rate was affected by the civil service one-off payments made in July and August 2023.
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It comes after statistics released last month showed the growth in employees' average total pay was 4.9% between June and August.
In real terms, when adjusted for inflation real regular pay growth on the year held at 1.9% - as it was from June to August. Total pay stood at 1.4%.
Inflation is the rate at which goods increase have increased over time, and is used to measure the cost of living.
The most recent data shows inflation dropped to 1.7% from 2.2% the month before.
The figures mean that wages are still growing but just at a slower rate than what was recorded before.
Commenting on today’s labour market figures, ONS director of economic statistics Liz McKeown said: "Growth in pay excluding bonuses eased again this month to its lowest rate in over two years. Pay growth including bonuses increased, but for recent periods these figures have been affected by last year’s one-off payments made to public sector workers."
Elsewhere, the ONS says the estimated number of vacancies in the UK from August to October was 831,000, down from 35,000, or 4%, from May to July.
There were 831,000 job vacancies from August to October, down 35,000 from the previous three months.
Vacancies decreased in the quarter for the 28th time in a row but are but still 35,000 above pre-pandemic levels.
Meanwhile, the early estimate of payrolled employees for last month decreased by 5,000 - or 0% - on the month but increased by 95,000 - 0.3% - on the year, to 30.4million.
Ms McKeown added: "The number of people on payrolls fell slightly in September and while it remains up on the year, annual growth continues to slow.
"Job vacancies have fallen again, as they have been doing for more than two years now. However, the total still remains a little above where it was before the pandemic."
Although the ONS said the estimate should be treated with caution given the ongoing low response rates to its jobs survey.
Work and Pensions Secretary Liz Kendall said: "2.8 million people – a near record number are locked out of work due to poor health. This is bad for people, bad for businesses and it’s holding our economy back.
"That’s why our Get Britain Working plan will bring forward the biggest reforms to employment support in a generation, backed by an additional £240million of investment.
“While it’s encouraging to see real pay growth this month, more needs to be done to improve living standards too."
It comes after millions of workers will get a pay rise of £1,400 a year from 2025, Chancellor Rachel Reeves confirmed in her inaugural Budget.
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The Government will boost the National Living Wage by 6.7% from April 1.
It comes less than a week after the UK's central bank, the Bank of England (BoE), reduced the base rate from 5% to 4.75%.
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