Official figures reveal a slowdown in wage growth in the UK job market, dropping from 7.3% to 6.6% in the three months to November, excluding bonuses. The decline comes alongside

indications of a stall in the job market, with the number of vacancies decreasing for the 18th consecutive time. Retailers reported the sharpest fall in vacancies, despite approaching the crucial Christmas trading period. Recruitment companies like Page Group, Hays, and Robert Walters have expressed concerns about a slowing job market, attributing it to weak employer confidence. The Office for National Statistics (ONS) reported a decrease of 49,000 vacancies to 934,000 between October and December. While some sectors fell below pre-Covid levels, overall job vacancies remain higher than before the pandemic.

Analysts suggest a potential fall in pay growth toward 2% by year-end, supporting the case for interest rate cuts. Despite these trends, Chancellor Jeremy Hunt noted the heartening growth in real wages for the fifth consecutive month, while Labour's shadow work and pensions secretary, Liz Kendall, highlighted the UK's lingering employment rate deficit compared to pre-pandemic levels. Photo by Betty Longbottom, Wikimedia commons.