MNI BRIEF: UK Wage Growth Accelerates On Private Sector Pickup

UK wage growth picked up in the three months to October, with regular earnings growth accelerating for the first time in over a year, the Office for National Statistics said Tuesday.

Regular pay rose 5.2% on year, with ex-bonus pay also higher by 5.2% y/y, both driven by gains in private sector pay.

“After slowing steadily for over a year, growth in pay excluding bonuses increased slightly in the latest period, driven by stronger growth in private sector pay. Pay growth including bonuses increased by more, but this reflects previous figures being affected by the one-off payments made to some public sector employees in 2023," ONS director of economic statistics Liz McKeown said. However, wider employment metrics were mixed, as the unemployment rate rose to 4.3% and vacancies rose, although "the total remains a little above where it was before the pandemic," McKeown noted.

The data will be of little comfort to policymakers at the Bank of England and just ahead of the December rate-setting meeting likely seals the decision on unchanged policy rates this month. (see MNI BOE WATCH: On Hold In December, Gradualism Dominant )