UK wages grow faster than expected

11th Jun 2024 07:16

(Sharecast News) - Wages grew faster than expected in the three months to April, according to figures released on Tuesday by the Office for National Statistics, dashing hopes of a rate cut this summer.

Total pay including bonuses rose 5.9% in the three months to April, coming in above expectations of 5.7% growth. Meanwhile, growth for the previous three-month period was revised up to 5.9% from 5.7%.

Average regular earnings, which exclude bonuses, grew by 6% during the three months to April, unchanged from the previous three months and versus expectations of 6.1% growth.

Adjusted for consumer price inflation, total pay including bonuses grew 2.7% in February to April. This marked the fastest rate of growth since July to September 2021.

The data showed that the unemployment rate increased to 4.4% in the three months to April from 4.3% in the previous three months.

The ONS said: "This month's figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong."