UK wages grew at their slowest pace in 3 1/2 years and employers continued to trim jobs, more signs of a weakening jobs market as the Bank of England considers how much further it can cut interest rates.
Pay growth excluding bonuses cooled to 4.5% in the three months through November, down from 4.6% in the period through October, the Office for National Statistics said on Tuesday. It was in line with the median forecast of economists.
Unemployment held at a near five-year high of 5.1%. Separate tax data showed the number of employees on payrolls falling 43,000 in December, the month after Chancellor of the Exchequer Rachel Reeves’ tax-raising budget. The decline was double market expectations.
The labor market is a key focus for BOE policymakers, who have warned in recent weeks that the downturn may be worsening amid evidence that firms are turning to cutting jobs rather than just holding off hiring. Financial markets are fully pricing in one more rate cut this year, with a roughly 70% chance of a second.