Daily Stock Market News

U.K. labor market cooled slightly in third quarter


The U.K.’s unemployment rate edged up slightly from its lowest level in almost five decades, in a sign the country’s tight labor market is gradually cooling as the economy weakens.

The U.K. unemployment rate came in at 3.6% in the three months to September, up from the 3.5% registered from June to August, data from the Office for National Statistics showed Tuesday.

Economists polled by The Wall Street Journal expected the unemployment rate to remain at 3.5%.

The most recent estimate of payrolled employees show employment grew in October by 74,000 to a record of 29.8 million. However, the ONS data also showed a slight increase in jobless claimants over the month.

Despite a still-tight job market, labor demand showed signs of moderating in the three months to October. Job vacancies fell for a fourth consecutive quarter, but remained at a historically high level of 1.225 million.

Pay growth accelerated, a sign of persisting inflation pressures. Average weekly earnings excluding bonuses in the three months to September rose 5.7% on year, more than the 5.5% increase in the previous three-month period. This is the strongest growth in regular pay seen outside of the coronavirus pandemic period, the ONS said.

The U.K. economy contracted 0.2% in the third quarter, as high energy prices and rising interest rates mark the beginning of what policy makers expect will be a long-lasting recession.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com



Read More: U.K. labor market cooled slightly in third quarter

You might also like
A note to our visitors

This website has updated its privacy policy in compliance with changes to European Union data protection law, for all members globally. We’ve also updated our Privacy Policy to give you more information about your rights and responsibilities with respect to your privacy and personal information. Please read this to review the updates about which cookies we use and what information we collect on our site. By continuing to use this site, you are agreeing to our updated privacy policy.