'Dismal picture' | Wage growth slows to five-year low as vacancies fall & unemployment holds steady

UK wage growth has slowed to its lowest rate in more than five years, as the latest Office for National Statistics figures point to a cooling jobs market marked by falling vacancies and cautious hiring.

Regular pay rose by 3.8% annually, down from 4.2% in the previous reading, while total pay increased by 3.9%. Real earnings growth remained subdued at 0.4%.

At the same time, the unemployment rate held at 5.2%, suggesting the labour market is not deteriorating sharply but is struggling to regain momentum. Vacancies fell again in the latest quarter to around 721,000, a 0.8% decline, reinforcing the picture of employers taking a more measured approach to recruitment.

Taken together, the figures suggest a labour market that remains stable but is increasingly constrained by economic uncertainty and cost pressures.