UK jobless rate declines but wage growth cools

The UK unemployment rate fell slightly in the three months leading up to August, although wage growth slowed, according to data released on Tuesday. 

The Office for National Statistics reported that the jobless rate decreased to 4.0% in the three months to August, down from 4.1% in the previous three months. This latest figure was below the consensus estimate of 4.1% cited by FXStreet. 

Wage growth also showed signs of moderation, with average earnings excluding bonuses rising by 4.9% in the three months to August, a decline from 5.1% in July. This August figure aligned with expectations. 

Annual growth in total earnings, which includes bonuses, was 3.8%. The ONS noted that this figure was influenced by one-time payments from the NHS and civil service made in June, July, and August 2023. The growth rate for earnings including bonuses decreased from 4.0% in the three months to July, meeting FXStreet's forecasts.

Separate estimates revealed a 0.4% increase in the number of payrolled employees in September compared to the same month last year. However, the total number of payrolled employees showed little change from August, declining slightly by 15,000. 

Preliminary figures suggest that median monthly pay rose by 5.3% in September compared to the previous year.