UK Labour Market Shows Signs of Cooling Amid Tepid Earnings Growth

The UK labour market has shown signs of slowing down in the second quarter, according to official data. The private sector saw regular earnings rise by just 2.8% annually up to June, a growth rate not seen since late 2020.

This growth matches the Bank of England's recent forecasts, but it did little to boost the pound sterling, which slightly declined in value. Unemployment remained at 4.9%, contrary to economists' projections for a decrease to 4.8%.

Despite a minimal increase of 83,000 in employment, falling short of expectations, potential risks loom with geopolitical tensions and prospective tax increases anticipated.