UK wage growth falls to 4.9%

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UK wage growth fell to 4.9 per cent in the three months to August, while growth in payroll employment flattened, official data showed on Tuesday.

Annual earnings growth, excluding bonuses, was in line with analysts’ expectations, and compared with 5.1 per cent in the three months to July, the Office for National Statistics said.

Including bonuses, wage growth was lower at 3.8 per cent, but this figure was skewed by large one-off bonuses to public sector workers last year.

The ONS said tax records showed that payroll employment fell slightly, by 35,000 or 0.1 per cent, in August while provisional figures for September suggested employment was virtually unchanged.

The data adds to evidence that pay pressures in the economy are easing. It also corroborates recent business surveys suggesting many employers have put hiring on hold ahead of this month’s Budget as they await more certainty over government policy on tax and spending.

This is a developing story