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UK pay growth eases

Slower-than-expected pay growth is welcome news for policymakers in a relatively tight jobs market.

12 December 2023

Those in work in the UK saw their total pay (including bonuses) grow by 7.2% in the three months to October, less than the expected 7.7%, compared to the prior comparable figure of 8.0%. Public sector employees’ pay growth slowed more sharply than those in the private sector at 6.9% compared to 7.3%. Pay growth, while still at high levels which will not quash inflation as quickly as the Bank of England wants, is continuing to slow and the direction of change for the last few months will be welcome news to the Bank.

Unemployment data is still subject to a degree of uncertainty following changes to the way the Office for National Statistics collects the data but it still points to a relatively tight labour market, with unemployment unchanged at 4.2% over the quarter.

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Charles Hepworth

Investment Director
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