UK Jobs Market Stays Soft Ahead of BoE Rate Decision

The UK jobs market remained soft in August, with pay growth near a six-year low and hiring down. Average weekly earnings, excluding bonuses, grew by 3.5% in the three months to July compared to the same period in 2025.

This is close to its slowest pace since 2020 and in line with economist forecasts. Job vacancies fell to 702,000 in August, the lowest level since 2014 excluding the COVID-19 pandemic period.

Small businesses cited high employment costs as a reason for the lack of job postings. Meanwhile, Britain's unemployment rate held steady at 4.9% in the three months to July.

The data adds to expectations that the Bank of England will keep interest rates on hold this week despite inflation pressure from the Iran war. Analysts say the figures would allow the BoE to maintain rates on Thursday, unless there's a big surprise in price data due on Wednesday.