December’s UK unemployment data came in lower than expected at 3.8% compared to 4% predictions.
That’s 40 basis points lower than November figures, potentially feeding into a higher-for-longer rates narrative.
Meanwhile, the number of employed individuals rose by 72,000 to 33.17 million, as full-time employees increased, largely recovering from a slump observed throughout 2023.
UK weekly wages saw a modest year-on-year increase of 5.8% to £669, marking the slowest growth in 17 months yet edging past predictions by a narrow margin.
The rise, albeit minimal, surpassed the anticipated 5.6% hike.
Both the public and private sectors witnessed a deceleration in wage growth, dipping to 5.8% and 5.9% respectively from a previous 6.7%.
Excluding bonuses, regular pay climbed to £626, experiencing its weakest expansion in 14 months at 6.2%, still slightly ahead of the 6% forecasted.
The hospitality and retail sector led with the highest annual growth rate at 7.2%, closely followed by manufacturing and finance at 6.9% and 6.7% respectively.
When adjusted for inflation, real wage growth for total pay including bonuses cooled off to 1.4%, while regular pay saw a more significant real term increase to 1.8%.