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UK wages rise for first time in a year

Wages have risen for the first time in more than a year, casting more doubt on potential interest rate cuts in the UK.

Unemployment was unchanged at 4.3% in the three months to October, said the Office for National Statistics, but pay including bonuses rose to 5.2%.

Job vacancies fell again and the number of employees on the payroll fell by 22,000 (0.1%), though employment is still up 160,000.

The ONS has admitted there have been issues with the reliability of its numbers but said its estimate for November is for a 35,000 fall in payrolled employees.

Moving into 2025, economists expect wage inflation to moderate, paving the way for lower borrowing costs.

Monica George Michail, from the National Institute of Economic and Social Research, said: "With low inflation, workers have been making real income gains.

"However, given the slowdown in recruitment activity and rising unemployment, we expect wage growth to slow in the coming months, although the rise in National Living Wage in April would exert some upward pressure.

"We expect the Bank of England to gradually cut rates in 2025 as wage growth moderates and inflation stabilises”.

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