ONS latest | 'Challenging year ahead' for firms with costs set to hit hiring & wage growth

UK wage growth stayed strong in the three months to November, but there are signs of a weakening jobs market, according to the latest research.

The latest data from the Office for National Statistics (ONS) revealed that, while wage growth has reached a six-month high, other indicators such as rising unemployment and declining job vacancies suggest a cautious outlook for the economy.

Wage growth, unemployment and a decline in job vacancies

Average weekly earnings in the UK increased by 5.6% in the three months leading to November 2024, up from 5.2% in the previous quarter. This rise in wages outpaced the current inflation rate of 2.5%, resulting in a real pay increase of 3.1%, the fastest rate since 2021.

Despite the positive wage growth, the unemployment rate edged up to 4.4% from 4.3%, and the number of payrolled employees decreased by 47,000 in December to 30.3 million, marking the largest decline since November 2020.