The UK's unemployment rate held steady at 5.1% for the three months leading up to November, according to the latest official figures released today.
Wage Growth Moderates Amid Inflation
The Office for National Statistics (ONS) reported that growth in average regular earnings, excluding bonuses, slowed to 4.5% over the same three-month period. However, after adjusting for inflation using the Consumer Prices Index (CPI), real regular pay showed a more positive increase of 0.9%.
Significant Public-Private Sector Pay Divide
A striking disparity in wage growth between the public and private sectors was revealed in the annual figures. Average regular earnings in the public sector grew by 7.9%, significantly outpacing the 3.6% growth seen in the private sector.
The ONS provided crucial context for this gap, noting that the high public sector growth rate is "affected by some public sector pay rises being paid earlier in 2025 than in 2024." This created a statistical 'base effect' which has now peaked and is expected to diminish over the coming quarter.
Job Vacancies Show Tentative Recovery
In a sign of potential resilience in the labour market, early estimates for job vacancies indicate a rise. For the period from October to December last year, vacancies increased by 10,000, or 1.3%, reaching a total of 734,000. This marks a recovery from the figures recorded between July and September.
The data arrives as Chancellor Rachel Reeves was seen visiting the new Darlington Economic Campus site late last week, highlighting the government's ongoing focus on economic performance and regional development.
