British employment on payroll fell for the fifth consecutive month in June and wage growth has slowed down, in the last sign that government tax increases, a higher minimum wage and the US trade war are coming to the job market.
Employers have reduced the number of employees of the payroll staff by 25,000 between April and May, the Office of National Statistics said on Thursday, revising its previous estimate of a decrease of 109,000.
The first estimates for June showed an additional drop of 41,000, leaving a job at the pay of 178,000 or 0.6% compared to June 2024, although these figures for the last month are likely to be revised.
Salaries growth has been maintained, average profits excluding bonuses of 5% more in the three months until May a year earlier – against annual growth of 5.3% in the three months to April.
The combination of persistent wage pressure and growing unemployment highlights the dilemma in the face of the Bank of England As political decision -makers consider when reducing interest rates.
Yael Selin, chief economist of the United Kingdom at KPMG, said that a significant weakening of workers' demand since the tax and wage changes in April “would open the door” to the monetary policy committee to reduce interest rates in August.
Unemployment increased to 4.7% in the three months until May, compared to 4.6% a month earlier, depending on the measure of the title of the ONS based on its survey on the active population.
