UK wage growth has fallen to its lowest level in four years, signaling broader economic concerns as businesses prepare for the November budget. New data from the KPMG and REC UK Report on Jobs indicates that starting salaries for permanent positions saw only a minimal increase in September, marking the slowest wage growth since 2019. This stagnation may be linked to a rise in employers’ national insurance contributions, which has reportedly reduced hiring in sectors like retail and hospitality.
Neil Carberry, Chief Executive of REC, mentioned that pay trends remain subdued in market-driven sectors, suggesting this could alleviate pressure on the Bank of England regarding interest rate adjustments. The report also highlights a significant decline in job vacancies across the UK and an increase in the number of job seekers, which raises concerns about the job market’s stability.
Carberry noted that while there has been some indication of stabilization in the permanent job market, the temporary job sector appears slightly healthier, with growth seen in some regions. However, the overall reduction in vacancies emphasizes the need for increased confidence in the economy to stimulate hiring.
In related news, the building materials manufacturer Ibstock reported weaker demand in the construction market attributed to declining customer confidence amid an uncertain economic environment. Shares in Ibstock fell nearly 10%, indicating market reaction to these concerns.
Additionally, UK retail footfall dropped by 1.8% in September compared to the previous year, reflecting consumers’ hesitance to spend, particularly on non-essential items. Helen Dickinson, CEO of the British Retail Consortium, observed that this trend resonates with declines in non-food sales, although certain sectors, such as gaming, have remained robust.
As the economy faces these challenges, attention turns to upcoming announcements from the government that could affect market and consumer confidence.
Source: https://www.theguardian.com/business/live/2025/oct/10/uk-wage-growth-slows-worker-demand-argentina-rescue-bessent-stock-markets-business-live-news