Official figures indicate a slight decrease in the UK’s unemployment rate, which was 4.2% in the three months to the end of June 2024, a drop from the previous quarter’s 4.4%.
In contrast, UK wage growth has decelerated, with an annual increase of 5.4%, marking the lowest rate in approximately two years.
Not all positive
The Office for National Statistics (ONS) has acknowledged some positive developments, yet it also noted indications of a ‘cooling’ job market, evidenced by an increase in job vacancies, a rise in redundancies, and a persistently high number of individuals not actively seeking employment.
This trend emerges as businesses are grappling with escalating operational costs and potentially reducing their recruitment efforts.