UK labour market shows signs of easing as wage growth slows

Job vacancies continue to fall

Wage growth in the UK slowed in the three months to January, showing signs that labour market pressures might be easing.

According to the Office for National Statistics, growth in regular pay, excluding bonuses, was 6.5% in the three months to January, down from 6.7% the previous month. Including bonuses, annual growth in average total pay was 5.7% during the quarter, down from 6%. Adjusting for inflation, however, growth in real terms of total and regular pay fell in the year from November 2022 to January 2023, by 3.2% for total pay and by 2.4% for regular pay.  A larger fall on the year for real total pay was last seen in February to April 2009, when it fell by 4.5%, but it is still one of the largest...