UK unemployment rate steady, private sector pay growth eases

(Sharecast News) - The UK unemployment rate was unchanged in June, while earnings growth in the private sector slowed and vacancies were at their lowest in more than five years, according to figures released on Tuesday by the Office of National Statistics. The unemployment rate unexpectedly remained at 4.9% in the three months to June, versus expectations for a dip to 4.8%. Meanwhile, vacancies fell by 6,000 to 707,000 - the lowest level since 2021.

Liz McKeown, director of economic statistics at the ONS, said: "Vacancies remain broadly flat, though a small fall in the latest period puts them at the lowest level in more than five years.

"The latest decrease was driven mainly by smaller businesses, which cite labour and operating costs as reasons for not hiring new staff or replacing leavers."

Growth in total earnings including bonuses fell to 4.1% in the three months to June from 4.3% in the three months to May. Economists had been expecting a decline to 4%.

Pay growth excluding bonuses ticked up to 3.5% from 3.4%, versus expectations for it to be unchanged.

Regular wage growth in the private sector fell to a six-year low of 2.8% per cent in the three months to June from 2.9% in the previous quarter, while public sector pay was up 6.1%, having risen 5.5% in the previous three months.

Liz McKeown said: "Regular wage growth has remained broadly stable in recent months. However, private sector pay growth has continued to ease, while public sector pay growth remains elevated due to the timing of the latest NHS pay awards."