UK labor market data showed further signs of softening, with payroll employment falling again in April while the unemployment rate edged higher in the three months to March. Payrolled employment declined by -100k or -0.3% mom in April, extending the annual drop to -210k or -0.7% yoy. Meanwhile, the unemployment rate rose from 4.9% to 5.0% in the three months to March, slightly above expectations of 4.9%.
Wage growth data presented a more mixed picture. Median monthly pay growth remained elevated at 4.9% yoy in April, unchanged from the previous month. In the three months to March, average earnings excluding bonuses slowed from 3.6% yoy to 3.4% yoy, matching expectations and suggesting some easing in underlying wage pressures. However, average earnings including bonuses accelerated from 3.9% yoy to 4.1% yoy, beating forecasts of 3.8% yoy.
The figures reinforce the difficult balancing act facing the Bank of England. While softer payrolls and rising unemployment point to gradual cooling in labor market conditions, wage growth remains firm enough to keep policymakers cautious about inflation risks, especially with higher energy costs continuing to pressure the broader economy.
| Indicator | Period | Latest |
|---|---|---|
| Payrolled Employment (mom) | April | -100k (-0.3%) |
| Payrolled Employment (yoy) | April | -210k (-0.7%) |
| Median Monthly Pay (yoy) | April | 4.9% |
| Unemployment Rate | 3 mth to March | 5.0% |
| Average Earnings ex Bonus (yoy) | 3 mth to March | 3.4% |
| Average Earnings inc Bonus (yoy) | 3 mth to March | 4.1% |
