UK labor market data showed further signs of cooling in December, led by outright job losses. Payrolled employment fell by -43k (-0.1% m/m), while the claimant count rose by 17.9k, pointing to softening hiring demand as growth momentum slows.
Wage dynamics were mixed but continued to ease on a broader trend basis. Median monthly pay growth rose to 4.0% yoy from yoy, though this follows a sharp deceleration from levels well above 5% seen through mid-2025.
In the three months to November, unemployment rate was unchanged at 5.1%, suggesting labour slack is building only gradually. Meanwhile, average earnings including bonuses slowed to 4.7% yoy from 4.8%, while earnings excluding bonuses eased to 4.5% from 4.6%.
, while the claimant count rose by 17.9k, pointing to softening hiring demand as growth momentum slows.){kind=link}