The labour market continues to loosen, with vacancies dropping further, though still slightly above pre-pandemic levels. The unemployment rate also ticked up slightly to 4.3%.
Wage growth is proving to be a little more persistent. Annual growth in employee's total earnings is up to 4.3%, reflecting the civil service one-off payments made in the summer.
Despite a loosening labour market, nominal pay growth remains in excess of the circa 3% level that is considered to be consistent with the Bank's 2% inflation target.
Increases in employer national insurance contributions, the National Living Wage, and public sector pay agreements are set to pressure business costs significantly.
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