Key facts
- UK average total earnings growth slowed to 4.1% in the three months to June.
- This is a decrease from 4.3% in the previous period.
- Pay growth excluding bonuses increased to 3.5%.
- Public sector pay growth was 6.1%, while private sector pay growth was 2.8%.
- UK vacancies fell to 707,000 in the May to July period.
- Inflation is expected to rise to nearly 3% in July due to higher energy bills.
UK wage growth slowed to 4.1% in the three months to June, down from 4.3% in the previous period, according to the Office for National Statistics. This figure was above analyst expectations of 4%. Annual growth for average earnings excluding bonuses was 3.5% for this period. Public sector pay growth stood at 6.1%, while private sector pay growth was 2.8%.
Vacancies in the UK dropped to 707,000 in the May to July 2026 period, with early estimates pointing to a decrease of 6,000. The number of payrolled employees dropped by 86,000 or 0.3% on an annual basis. Danni Hewson, head of financial analysis at AJ Bell, noted that public sector pay jumps are influencing headline wage growth numbers.
These figures emerge as the UK faces rising living costs, partly due to the ongoing Middle East crisis and soaring energy prices. Official figures are expected to show UK inflation nearing 3% in July. The Bank of England is considering raising interest rates from as early as September to combat sticky-high inflation.