UK labor market data showed further signs of cooling in February, with wage growth easing and employment momentum weakening. Payrolled employees rose modestly by 20k on the month to 30.3 million, but were still down -49k compared to a year earlier, highlighting a gradual loss of underlying strength. Wage pressures moderated, with median monthly pay growth slowing from 4.4% yoy to 4.1% yoy. The claimant count rose by 24.7k in February, slightly below forecasts of 25.8k.
In the three months to January, average earnings excluding bonuses eased from 4.1% yoy to 3.8% yoy, undershooting expectations 4.0% yoy. Earnings including bonuses slowed from 4.2% yoy to 3.9% yoy, matched expectations. The trend points to a gradual easing in pay-driven inflation pressures.
Despite the softer wage backdrop, the labour market remains relatively resilient on the surface. The unemployment rate held steady at 5.2%, in line with expectations.
