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UK wage growth holds steady as payrolled employment slips

June data showed payrolled employees down 4,000 from May and down 71,000, or 0.2%, year on year, while median monthly pay growth eased to 4.3%.

Reported · Written up by our desk · Economy

The UK labour market showed gradual cooling in June, with payroll employment continuing to edge lower while wage growth stayed broadly steady, according to Action Forex. Early estimates indicated payrolled employees fell by 4,000 from May and by 71,000, or 0.2%, versus a year earlier.

Median monthly pay growth eased to 4.3% year on year from 4.6% in May, suggesting wage pressures are moderating alongside weaker hiring conditions. Over the three months to May, average regular earnings excluding bonuses held at 3.4% year on year for a third consecutive period, with the outlet citing this as the weakest growth since late 2020.

Total earnings, including bonuses, rose 4.3%, while the employment rate edged up to 75.1% over the quarter and the unemployment rate slipped to 4.9% from the prior three month period. Action Forex said the continued moderation in pay growth could provide reassurance to the Bank of England that domestic inflation pressures are easing, though wage growth remains above levels consistent with the 2% inflation target.

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