U.K. wages grew at the fastest pace in 11 years in the three months through May and unemployment remained at its lowest rate since the mid-1970s.
Average earnings excluding bonuses rose 3.6%, the Office for National Statistics said Tuesday. The number of people in work rose 28,000 to a record high, leaving the jobless rate at a 44-year low of 3.8%.
- The figures underline the buoyancy of the labor market, which has boosted consumer spending and left employers struggling to find staff.
- Basic wage growth was higher than the 3.5% predicted by economists in a Bloomberg survey. Total pay rose 3.4%, boosted by settlements in the National Health Service.
- Total public-sector pay growth was 3.6%, the most since 2010, and private-sector wages rose 3.4%.
- Wage growth continues to comfortably outpace consumer-price inflation, which averaged 2% during the period.
- There were some signs the labor market may be slowing, however. Employment growth was the weakest since the summer of 2018, lowering the employment rate, and vacancies fell to their lowest level for a year.
- The question is whether the slower pace of job creation reflects weaker demand for workers or firms struggling to find suitable staff. Self employment accounted for all of the increase, as the number of employees fell.