UK pay growth stays high – but Britons are feeling the pinch

Firms are reluctant to hire and unemployment is rising, as inflation dulls the impact of higher wages

UK labour market cools as pay growth slows and job losses rise

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Today’s latest snapshot of the UK jobs market shows what is becoming a familiar pattern: a gradual slowdown in hiring, rising unemployment, yet with wage growth still uncomfortably high for policymakers.

Whether because of Rachel Reeves’s £25bn national insurance increase, AI-related disruption or Donald Trump’s tariffs – perhaps all three – companies seem to be cautious about taking on staff.