UK wage growth cools less than expected as unemployment rate ticks up

Boosts case for gradual cutting cycle

UK wage growth eased less than expected in the three months to September, strengthening the case for the Bank of England to be cautious in its rate-cutting cycle.

According to Labour Force Survey (LFS) figures published by the Office for National Statistics today (12 November), annual growth in employees' average regular earnings, excluding bonuses, fell from 4.9% to 4.8% in July to September. The figure was the lowest since mid-2022, but it fell short of economists' expectations of a larger drop to 4.7%. Including bonuses, annual growth in total earnings rose from 3.9% to 4.3%, above consensus of 3.9%.  Bank of England meets expectations with 25 basis point rate cut to 4.75% Private sector regular pay growth, the Bank of England's key indic...