Income growth in the UK has retreated further as the unemployment rate hit its highest level in more than four years, but official figures also showed signs the labor market may be stabilizing.
The Office for National Statistics (ONS) said regular wage growth fell again to 4.7% in the three months to August, down from 4.8% in the previous three months, and hit a new low in more than three years.
The unemployment rate rose to 4.8% in the three months to August, up from 4.7% in the previous three months and the highest since March to January 2021, the ONS added, although it said the figure should be treated with caution as it continues to review its labor market survey.
But he said there were signs the labor market slowdown was “stabilizing”, with the number of workers on UK payrolls rising – 10,000 more between July and August, following a smaller rise the previous month, although early estimates indicated a fall of 10,000 during September to 30.3 million.
ONS director of economic statistics Liz McKeown said: “After a long period of weak hiring activity, there are signs that the falls we have seen in both payroll figures and vacancies are now stabilizing.
“We see different patterns across all age ranges, with record numbers of people over 65 working, while the rise in unemployment was mainly driven by younger people.”
