Official numbers show that the UK's earnings growth slowed to its lowest level in over two years, coinciding with an unexpected decline in the jobless rate. In the three months leading up to June, regular pay growth was 5.4% annually, according to data from the Office for National Statistics (ONS). But this was down from 5.7% over the preceding three months, marking the lowest gain since July 2022.Official numbers show that the UK's earnings growth slowed to its lowest level in over two years, coinciding with an unexpected decline in the jobless rate. In the three months leading up to June, regular pay growth was 5.4% annually, according to data from the Office for National Statistics (ONS). But this decreased from 5.7% over the preceding three months.

When inflation was factored in, the figures showed that UK workers saw an average gain of 2.4%. Liz McKeown, head of economic statistics at ONS, stated: "Basic pay growth is still relatively strong, but it is slowing down." "The one-time NHS bonuses from last year affected the comparison, with growth in total pay slowing noticeably." According to the ONS, the unemployment rate decreased from 4.4% to 4.2% in the three months leading up to June.

A consensus of economists had predicted an increase to 4.5% for the quarter.

The statistics body said it reported a broad decrease in unemployment among surveyed Britons over 25.

The data also highlighted a “modest increase” in employment for the quarter, in another positive sign for the UK labour market.