UK wage Growth slows

Latest Office for National Statistics (ONS) wage growth figures show continued signs of stagnation, as employer confidence falls

"If the data is to be believed, the UK labour market is starting to wobble. Wage growth had been reasonably strong in the face of significant economic challenges, but this is slipping as employers face rising employment costs and an uncertain global outlook.

Looking ahead, it is difficult to see any improvement in the near-term. Employer sentiment surveys show confidence trending lower, with rising employment costs depressing hiring intentions and wage growth. While the National Insurance rise has yet to be reflected in labour market data, it may start to have an impact over the next few months. The unpredictable tariff unrest also looms over company hiring plans.

Equally, inflationary pressures have not gone away. The last set of inflation data showed prices still rising above the target 2% rate. This version talks about wages falling, not rising. In short, it is a murky outlook for the second half of 2025. Building financial resilience is all the more important against that backdrop. Ensuring that your nest egg is growing ahead of inflation is crucial."