{"id":107872,"date":"2025-04-15T12:30:00","date_gmt":"2025-04-15T11:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=107872"},"modified":"2025-04-15T11:30:55","modified_gmt":"2025-04-15T10:30:55","slug":"uk-wages-up-5-9-but-job-vacancies-tumble","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/uk-wages-up-5-9-but-job-vacancies-tumble\/","title":{"rendered":"UK Wages up 5.9%, but Job Vacancies Tumble to Their Lowest Since COVID"},"content":{"rendered":"\n

UK wages saw a notable increase in early 2025, rising by 5.9%<\/strong> in the three months leading up to February, as the job vacancy market continued to deteriorate. The latest figures, reported by the Office for National Statistics (ONS<\/a>), reflect a mix of public sector pay hikes and ongoing uncertainty in the private sector.<\/p>\n\n\n\n

Despite the upward trend in wages, the number of job vacancies across the country fell significantly, dropping to 781,000<\/strong> for the three months to March. This marks the lowest level since the Covid-19 pandemic and a significant decrease from pre-pandemic levels.<\/p>\n\n\n\n

Wage Growth Driven by Public Sector Rises<\/strong><\/h2>\n\n\n\n

According to the ONS, the growth in wages <\/a>was particularly driven by increases in the public sector, where pay rises were fully realised over the period. The report noted that public sector wages have outpaced inflation<\/strong>, with regular pay growth accelerating in this segment.\u00a0<\/p>\n\n\n\n

Meanwhile, private sector wages remained largely stagnant, showing little change over the same period.<\/p>\n\n\n\n

The sharp rise in wages, including bonuses, surpassed inflation by 3%, with a 2.8% increase over the year, based on the most recent inflation figure of 2.8% in February<\/strong>. This wage growth, however, must be viewed against the backdrop of ongoing inflation pressures, which continue to affect the broader economy.<\/p>\n\n\n\n

Economic analysts point out that this wage increase could have an impact on monetary policy. As the Bank of England<\/a> considers whether to adjust interest rates, these higher-than-expected wage growth figures could play a pivotal role in decision-making.\u00a0<\/p>\n\n\n\n

With the base interest rate currently at 4.5%, the Bank\u2019s stance remains cautious, as it navigates a challenging economic environment.<\/p>\n\n\n\n

Job Vacancies Fall as Hiring Slows<\/strong><\/h2>\n\n\n\n

The downturn in job vacancies is another critical element highlighted in the ONS report. Job openings have dropped to 781,000 <\/strong>in the three months leading to March, falling below pre-pandemic levels<\/strong> for the first time. This is indicative of a slowing labour market, with fewer employers seeking to hire.<\/p>\n\n\n\n

The report also noted that the unemployment rate remained steady at 4.4%, while the employment rate for individuals aged 16 to 64 stood at 75.1%<\/strong>. Despite the stable unemployment figures, these statistics reflect a more cautious economic outlook, as job openings<\/strong> slow and employee numbers on payrolls declined slightly over the same period.<\/p>\n\n\n\n

Experts believe the ongoing uncertainty in the economic outlook, including issues around global trade and rising tariffs, is contributing to a more cautious hiring environment. The slowing job market may indicate broader challenges for businesses looking to expand or recruit.<\/p>\n","protected":false},"excerpt":{"rendered":"

Wages in the UK have risen by 5.9% in early 2025, marking a significant increase. However, job vacancies have fallen to their lowest point since the pandemic, reflecting a shrinking labour market. The balance between these rising wages and the contracting job market could have significant implications for the UK economy<\/p>\n","protected":false},"author":10,"featured_media":107874,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-107872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/107872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=107872"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/107872\/revisions"}],"predecessor-version":[{"id":107875,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/107872\/revisions\/107875"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/107874"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=107872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=107872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=107872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}