Wage growth slows again as job market stall

UK wage growth slowed in the job market, but it’s still higher than the rising prices, says official data.

From October to November, pay growth (excluding bonuses) dropped from 7.3% to 6.6%, but it’s still beating inflation.

However, the job market is showing signs of slowing down due to higher interest rates affecting businesses, leading to a decrease in job vacancies.

Retail sector roles have seen the most significant decline in recent months.

Major recruitment companies like Page Group, Hays, and Robert Walters have issued warnings about the job market slowdown, citing weak confidence among hiring companies.

In the last quarter of the year, UK job vacancies fell by 49,000, marking the 18th consecutive quarterly decline, the longest recorded.

Despite the decline, vacancies are still higher than pre-pandemic levels, according to the Office for National Statistics (ONS).

In the three months to November, public sector pay growth (6.6%) surpassed private sector wage increases (6.5%) for the first time since March 2021, according to the ONS.