Wage growth has fallen back to its lowest level for more than three years as firms continue to clamp down on hiring, according to official figures.
The Office for National Statistics (ONS) said regular wage growth, excluding bonuses, dropped to 4.8% in the three months to July, down from 5% in the previous three months and the lowest since May 2022.
Wages are still outstripping inflation but at a slower pace, as real earnings growth – with the Consumer Prices Index (CPI) taken into account – eased back to 1.2%, which is the lowest point since September 2023.
The ONS said the rate of unemployment remained unchanged at 4.7% in the three months to July, but there was a further hefty fall of 8,000 for the number of payrolled workers last month and another 10,000 drop in vacancies over the quarter to August.
ONS director of economic statistics Liz McKeown said: “The labour market continues to cool with the number of people on payroll falling again, while firms also told us there were fewer jobs in the latest period.”
She added: “The number of vacancies also fell on the quarter, though the rate of decline appears to be slowing.”
