Labour Market

With businesses feeling the heat from a raft of cost-pressures, a larger easing of average earnings, including bonuses, to 4.6% in June will be welcomed.

This data suggests some loosening in the jobs market with vacancies staying below pre-pandemic levels and unemployment nudging up, but wage growth including bonuses remains strong.

There are clear signs of a further loosening in the labour market with fewer vacancies, although they remain just above pre-pandemic levels.

The labour market continues to be challenging for many businesses, with wage growth continuing to rise as firms compete for skilled workers. This is a concern as they face a significant rise in employment

News that wages have been rising faster will be a concern for businesses as they continue to grapple with the huge increase in employment costs announced in the autumn Budget.

The small uptick in unemployment and decline in payrolled employees suggests some further loosening of the labour market.

With vacancies continuing to fall and the pace of wage rises slowing, it would appear there are further signs of the labour market loosening.