UK Labor Market Shows Signs Of Cooling
(RTTNews) - The UK unemployment rate remained stable in the three months to June, and job vacancies and employment declined, signaling weakness in the labor market, official data showed Tuesday.
The unemployment rate stood at 4.9 percent in the June quarter, unchanged from the preceding period, the Office for National Statistics reported. The rate was seen at 4.8 percent. The number of vacancies decreased 6,000 to 707,000 in the three months to July as firms reduced recruitment due to rising labor costs.
Average earnings excluding bonus logged an annual increase of 3.5 percent, slightly faster than forecast of 3.4 percent. Including bonus, earnings advanced 4.1 percent compared to expectations of 4.0 percent.
There were 47,000 working days lost because of labor disputes in June.
In July, payroll employment decreased 94,000 from the previous year and by 13,000 on a monthly basis to 30.3 million, data showed.
ING economist James Smith said ongoing weakness in private-sector hiring and wage growth suggests the bar is still relatively high for a rate hike in 2026, barring a severe and prolonged spike in energy prices.
The economist expects the Bank of England to remain on hold this year and resume rate cuts from spring 2027. British Chambers of?Commerce Head?of?Policy for People and Work Patrick Milnes said "Although unemployment has held steady at 4.9%, this cannot hide the wider problems bedeviling the UK's job market."
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