UK Private-Sector Jobs Fall 0.5% as Wage Growth Slows Below 3%
Updated
Updated · ING Think · Jul 21
UK Private-Sector Jobs Fall 0.5% as Wage Growth Slows Below 3%
3 articles · Updated · ING Think · Jul 21
Summary
Private-sector payrolls fell 0.5% through June, extending a hiring slump even as overall UK unemployment held at 4.9% and total payroll employment stayed flat.
Consumer services led the weakness, with hospitality, retail and entertainment jobs falling at nearly 3% annualised rates after National Insurance and minimum-wage increases and post-Covid overstaffing.
Private-sector pay growth has dropped below 3% from 6% 18 months ago, while public-sector pay is still rising above 5% and public payrolls are up 0.7% this year.
That low-hire, low-fire pattern is easing second-round inflation risks and supports calls for the Bank of England to keep rates on hold this year unless energy prices worsen.