Cooling Labour Market Questions Rate Hikes as Oil Surge Threatens New Cost-of-Living Crisis

UK regular private sector pay growth eased to 2.8% in June, down from 2.9% and the weakest since October 2020, as the Office for National Statistics reported unemployment holding steady at 4.9%. Vacancies fell to a five-year low of 707,000, signalling a softening jobs market that economists say reduces the case for Bank of England rate hikes.

Behind the Data

The payroll count dropped by 13,000 in July, matching June's decline and suggesting a steady...