The rate of wage rises in the UK continued to slow as the number of job vacancies and people in work fell, according to new figures.
Average weekly earnings slowed to 4.6% down from 5%, while pay excluding bonuses continued to grow 5%, according to data from the Office for National Statistics (ONS) for the three months to June.
It means the gap between inflation – the rate of price rises – and wage increases is narrowing, and the labour market is slowing. Inflation stood at 3.6% in June.
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The number of employees on payroll has fallen in ten of the last 12 months, with the falls concentrated in hospitality and retail, the ONS said. It came as employers faced higher wage bills from increased minimum wages and upped national insurance contributions.
“Job vacancies, likewise, have continued to fall, also driven by fewer opportunities in these industries,” the ONS director of economic statistics, Liz McKeown, said.
The number of job vacancies fell for the 37th consecutive period and in 16 of the 18 industry sectors.
Unemployment remained at 4.7% in June, the same as in May.
The ONS, however, continued to advise caution in interpreting changes in the monthly unemployment rate due to concerns over the figures’ reliability.
The exact number of unemployed people is unknown, partly because people do not respond to surveys and answer the phone when the ONS calls.
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