- The number of payrolled UK employees dropped by 35k between July and August 2024. However, payrolled employees remained 165k higher compared to August 2023.
- Job vacancies declined by 34k from July 2024 to September 2024, marking the 27th consecutive period of falling vacancies.
- Claimant counts increased by 27.9k in September after rising by just 0.3k in August.
Slower Wage Growth Raises Questions on Inflation
August’s UK wage growth figures suggest a softer inflation outlook. Slower wage growth may reduce disposable income, possibly curbing consumer spending and easing inflationary pressures.
However, trends in the UK unemployment rate could be a focal point. The unemployment rate was down from 4.4% in May 2024 to 4.0% in August 2024, signaling a tightening labor market. Tighter labor market conditions could support wage growth, potentially fueling…
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