Britain’s labour market showed signs of cooling in the second quarter, highlighted by tepid earnings growth and a significant drop in job vacancies, according to official data released on Tuesday.
The private sector saw regular earnings rise by just 2.8% annually up to June, a growth rate not seen since late 2020. This growth met the Bank of England’s recent forecasts, yet the pound sterling slightly declined as unemployment remained at 4.9%, contrary to economists’ projections for a decrease to 4.8%.
Despite a minimal increment of 83,000 in employment, falling short of expectations, potential risks loom with geopolitical tensions and prospective tax increases anticipated. The overall scenario points towards a labour market steadily losing momentum, raising concerns about future economic stability.
(With inputs from agencies.)