Wage growth slows to two-year low as region’s unemployment rate edges down

UK wage growth has slowed to a two-year low over the three months to July, according to new figures released today.

The Office for National Statistics (ONS) said regular wage growth fell to 5.1 per cent year on year, marking the lowest level since the quarter to July 2022.

With inflation taken into account, UK workers saw their pay increase by 3 per cent, down from 3.2 per cent in the previous three months.

Meanwhile, in the June to August period, the estimated number of vacancies in the UK fell by 42,000 on the quarter to 857,000.

Vacancies decreased on the quarter for the 26th consecutive period but are still above pre-coronavirus (COVID-19) pandemic levels.

In May to July, the West Midlands unemployment rate by 0.5 per cent to 4.7 per cent in May to July, compared to the same period in 2023.

But employment also dropped by 0.7 per cent year on year.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “At a national level, vacancies are continuing to decline while wage growth gradually slows.

“However, pay continues to outpace inflation and ongoing increases in economic inactivity mean recruitment difficulties are persisting for many firms, constricting productivity and economic growth.

“With the autumn statement around the corner, it’s critical that the government makes the most of the policy levers available in the fiscal environment to remove the tax on workplace medical insurance and cash health plans for employers, increase access to affordable childcare and better join up support available to help local residents remain in work.”

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