Business · 19 March 2026
UK wage growth slows to weakest pace in over five years
UK wage growth cooled to 3.8% in the three months to January, marking its slowest pace in more than five years as labour market pressures ease. Despite weaker pay rises, unemployment held steady at 5.2%, suggesting stability rather than deterioration. Economists say slowing wages could reduce inflation pressure, shaping Bank of England rate decisions. However, persistent cost pressures and modest hiring gains mean households may still feel squeezed in coming months.
Reported by Reuters · How we write briefs