UK unemployment rate ticks higher, wage growth slows

(Sharecast News) - The UK unemployment rate unexpectedly ticked higher in May, while pay growth slowed, according to figures released on Thursday by the Office for National Statistics. The unemployment rate rose to 4.7% in the three months to May from 4.6% a month earlier, hitting the highest level since early 2021. Economists were expecting the rate to remain unchanged.

Annual growth in employees' average earnings for both regular earnings, which exclude bonuses, and total earnings, which including bonuses, was 5%. That's down from 5.3% and 5.4%, respectively, a month earlier.

The data also showed that the estimated number of vacancies fell by 56,000 on the quarter to 727,000 in April to June. This was the 36th consecutive quarter of falls.

Liz McKeown, director of economic statistics at the ONS, said: "The labour market continues to weaken, with the number of employees on payroll falling again, though revised tax data shows the decline in recent months is less pronounced than previously estimated.

"Pay growth fell again in both cash and real terms, but both measures remain relatively strong by historic standards.

"The number of job vacancies is still falling and has now been dropping continuously for three years."