Tue, 14 Oct 2025

Tue, 14 Oct 2025 Wage growth slows slightly over summer

Annual growth in employees' average earnings was 4.7% in the three months to August.

* Average wage growth in the UK was 4.7% in the three months to August, down from 4.8% in July.
* Unemployment rate rose slightly from 4.7% to 4.8%.
* Job vacancies fell by 9,000 (1.3%) over the summer.
* The rise in unemployment was driven mainly by younger people.
* Analysts say the data indicates that the UK jobs market is stabilising after a year of volatility.
* Annual wage growth was 6% for the public sector and 4.4% for the private sector, with private sector earnings growth at its lowest in four years.
* Real wage growth (taking into account inflation) was 0.9%, meaning workers are barely keeping up with rising living costs.
* The Liberal Democrats and Resolution Foundation have criticised real wage growth as "paltry", saying it is not enough to cover the cost of living.
* Chancellor Rachel Reeves will set out her economic plans in the second Budget on November 26, which aims to help reduce costs for families.
  >>