UK labor market data pointed to further cooling at the start of the year. Payrolled employment fell by -11k in January and is down -134k over the past 12 months, a -0.4% yoy decline.
Meanwhile, the January claimant count rose by 28.6k, above expectations of 22.8k, signaling rising pressures in the job market. Early estimates for January showed median monthly pay growth ticking up to 4.6% yoy from 4.4%.
In the three months to December, the unemployment rate increased from 5.1% to 5.2% — the highest level since 2020. Wage growth showed signs of moderation. Average earnings including bonus slowed to 4.2% yoy from 4.6%, undershooting expectations of 4.6%. Earnings excluding bonus eased to 4.2% yoy from 4.4%, in line with forecasts.
