BRITISH pay grew at its slowest pace in more than two years in the three months to August and vacancies fell again, according to official data that will likely be welcomed by the Bank of England as it considers when to cut interest rates again.
Average weekly earnings, excluding bonuses, were 4.9 per cent higher than a year earlier in the three months to the end of August, the Office for National Statistics said, in line with the median forecasts of economists polled by Reuters.
Sterling was little changed after the data and markets continued to show around an 80 per cent chance of a quarter-point UK interest rate cut on Nov. 7.
Britain's central bank cut borrowing costs in August but kept them on hold at its September meeting, saying it wanted to see further signs that inflation pressures were abating.
Data due on Wednesday (16) is expected to show Britain's consumer prices index fell to 1.9 per cent in September, below the central bank's 2 per cent target, although core inflation is likely to be stronger, according to the economists polled by Reuters.
"For now, another interest rate cut in November looks nailed on, and we will see how the budget changes the outlook for the path of rates from there," Luke Bartholomew, deputy chief economist at asset manager abrdn, said.
The first tax and spending announcement of the new government is scheduled for Oct. 30.
Chancellor Rachel Reeves on Monday (14) declined to rule out the possibility of an increase in social security contributions paid by employers, prompting the opposition Tories to say she was planning a "jobs tax".
Recent data releases have shown a cooling of pay pressures that built during and after the coronavirus pandemic when employers were forced to jack up wages to recruit and retain staff.
Excluding bonuses, private sector pay growth - closely watched by the central bank - slowed to 4.8 per cent in the three months to August, leaving it on track to meet the BoE's forecast of an increase of 4.8 per cent for the third quarter as a whole.
Adding to signs of a cooling labour market, the estimated number of vacancies in the UK fell by 34,000 in the three months to September to 841,000, similar to pre-pandemic levels.
The figures also showed a fall in the unemployment rate to 4 per cent during the three months to August, the lowest reading this year, and the biggest surge in employment on record.
However, the statistics agency stepped up its health warning over the Labour Force Survey which is used to measure the jobless rate and employment. The survey is being overhauled because of falling response rates.
The statistics office said the survey likely overstated employment growth and the fall in unemployment.
"It's clear that this data offers little insight into what's currently happening in the labour market. We think the most likely story is that labour market conditions are continuing to gradually loosen," said Andrew Goodwin, chief UK economist at consultancy Oxford Economics.
(Reuters)
Emma Raducanu during a practice session REUTERS/Andrew Couldridge
Moglai Bap and Mo Chara of Kneecap perform at Glastonbury Festival at Worthy Farm in Pilton, Somerset, Britain, June 28, 2025. REUTERS/Jaimi Joy
Police may probe anti-Israel comments at Glastonbury
BRITISH police said they were considering whether to launch an investigation after performers at Glastonbury Festival made anti-Israel comments during their shows.
"We are aware of the comments made by acts on the West Holts Stage at Glastonbury Festival this afternoon," Avon and Somerset Police, in western England, said on X late on Saturday (28).
Irish hip-hop group Kneecap and punk duo Bob Vylan made anti-Israeli chants in separate shows on the West Holts stage on Saturday. One of the members of Bob Vylan chanted "Death, death, to the IDF" in a reference to the Israel Defense Forces.
"Video evidence will be assessed by officers to determine whether any offences may have been committed that would require a criminal investigation," the police statement said.
The Israeli Embassy in Britain said it was "deeply disturbed by the inflammatory and hateful rhetoric expressed on stage at the Glastonbury Festival".
Prime minister Keir Starmer said earlier this month it was "not appropriate" for Kneecap to appear at Glastonbury.
The band's frontman Liam Óg Ó hAnnaidh was charged with a terrorism offence last month for allegedly displaying a flag in support of Iran-backed militant group Hezbollah at a concert in November. He has denied the charge.
A British government minister said it was appalling that the anti-Israel chants had been made at Glastonbury, and that the festival's organisers and the BBC broadcaster - which is showing the event - had questions to answer.
Health secretary Wes Streeting said he was also appalled by violence committed by Israeli settlers in the occupied West Bank.
"I'd also say to the Israeli Embassy, get your own house in order in terms of the conduct of your own citizens and the settlers in the West Bank," Streeting told Sky News.
"I wish they'd take the violence of their own citizens towards Palestinians more seriously," he said.
(Reuters)