Official data revealed that the UK's unemployment rate inched higher to 4.3% in the three months leading up to the end of July. This marked a slight increase from the 4.2% rate observed in the quarter ending in June, as reported by the Office for National Statistics.
However, the data also highlighted that average regular earnings growth, excluding bonuses, remained at a record high of 7.8% in the three-month period concluding in July.
“Wage growth remains high, partly reflecting one-off payments to public sector workers, but for real wages to grow sustainably, we must stick to our plan to halve inflation,” chancellor of exchequer Jeremy Hunt said in reaction.
Notably, Prime Minister Rishi Sunak had expressed hopes at the beginning of 2023 to reduce UK annual inflation, particularly when it was above 10%. However, the inflation rate still stands at 6.8%, making it the highest among G7 nations.