The latest U.K. labor market figures painted a mixed picture for September, highlighting a slowdown in hiring momentum alongside still-solid wage growth. Payroll employment fell by -10k. Claimant count rose sharply by 25.8k, well above expectations for a modest 10.3k increase.
At the same time, wage growth remains resilient, albeit easing from its prior peak. Median monthly pay increased by 5.5% yoy, down from 6.5% in August but still within the tight range seen since the start of the year.
Over the three months to August, unemployment rate ticked up to 4.8%, slightly higher than the expected 4.7%. Meanwhile, average earnings including bonuses rose 5.0% yoy, beating forecasts of 4.7% yoy. Pay growth excluding bonuses slowed to 4.7% yoy, in line with expectations.
Overall, the figures reinforce the view of a gradual cooling in the labor market rather than a sharp deterioration. Elevated wage pressures will remain a key concern for the BoE.
