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UK pay growth at eight-month high

UK pay growth reached its highest level in eight months and employment unexpectedly rose, figures likely to keep the Bank of England wary about future interest-rate cuts.
 
The Office for National Statistics said wages, excluding bonuses, jumped 5.9% in the final quarter of 2024, compared with a year ago, up sharply from a 5.6% rise previously. 
 
It was in line with economists' expectations. 
 
Unemployment held at 4.4%, while the number of payrolled employees rose 21 thousand.
 
A fall of 30 thousand was expected, and the decline in December was smaller than previously thought.
 
Private sector wage growth picked up to 6.2% while the Bank of England had forecast 6.3%.
 
The figures are likely to entrench caution among officials at the BOE, trying to balance Britain's sluggish growth and signs of job cuts against sticky price and wage pressures. 
 


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