UK labor market data for March pointed to a gradual cooling, with payrolled employment slipping by -11k and claimant count rising by 26.8k, above expectations. Wage growth is also easing. Median monthly pay growth edged down from 4.4% yoy to 4.3% yoy
In the three months to February, regular pay growth (excluding bonus) slowed from 3.8% yoy to 3.6% yoy—the lowest since November 2020. This moderation in earnings points to a softening in inflationary pressure from the labor market.
Despite this, the unemployment rate fell from 5.2% to 4.9%, highlighting a mixed picture.
According to Liz McKeown of ONS, payroll numbers have remained broadly flat amid weak hiring, while vacancies have dropped to their lowest in nearly five years.
| Data | Latest | Previous |
|---|---|---|
| Payrolled Employment | -11k (-0.0%) | |
| Median Monthly Pay Growth | 4.3% | 4.4% |
| Claimant Count Change | +26.8k | |
| Unemployment Rate | 4.9% | 5.2% |
| Pay Growth ex-bonus | 3.6% | 3.8% |
