UK jobs market cools as unemployment rises and pay growth slows

Britain’s labour market showed further signs of strain in official data released Tuesday, with unemployment edging up to 4.8 percent in the three months to the end of August while job vacancies fell for the 39th consecutive period and pay growth cooled. The Office for National Statistics said the ILO unemployment rate rose from 4.7 percent, payroll employment was revised up by 10,000 in August but early estimates point to a 10,000 fall in September, and vacancies fell by about 9,000 in the quarter to September 30.

Wage growth excluding bonuses slowed to 4.7 percent in the three months to August, down from 4.8 previously, while wages including bonuses rose 5.0 percent. Adjusted for inflation, real regular earnings growth fell to 0.9 percent, the weakest two year showing. Private sector pay growth eased to 4.4 percent, while public sector pay rose to around 6 percent, reflecting earlier award timings. The number of people on payrolls stood near 30.3 million in preliminary September figures.

The ONS also highlighted shifting patterns by age. There are a record 1.7 million people aged over 65 in work, up significantly on a year earlier, while the rise in unemployment was driven...