Stabilisation signs emerge in UK labour data despite stagnant unemployment and slowing wage growth at 2.8% 3m/YoY.
The UK unemployment rate remained unchanged at 4.9% in July, defying expectations of a slight decline to 4.8%. Payrolled employees fell by 13k, while private sector wage growth slowed to 2.8% on a three-month year-over-year basis, continuing a downward trend.
Job vacancies edged down to 707k from 711k, though the vacancy-to-unemployment ratio held steady at 0.4, suggesting potential stabilisation. Redundancies also showed signs of easing, though full data remains pending. The labour market’s mixed signals leave the Bank of England’s Monetary Policy Committee in a holding pattern ahead of key inflation figures.
Market reaction was muted, with investors awaiting further clarity on wage pressures and employment trends before adjusting expectations for monetary policy.