UK wages growth slows as jobless rate stays at 5.6%

British wage growth fell more than expected to its lowest in three months, in June, official data published yesterday showed, while the unemployment rate held steady.

Growth in average weekly earnings in the three months to June slumped to 2.4% on the year, slowing down from 3.2% in the three months to May, below economists’ forecasts of 2.8% in a Reuters poll.

The UK Office for National Statistics also said Britain’s unemployment rate held steady, at 5.6%, after an unexpected rise in the three months to May. May’s increase in unemployment was the first since early 2013, and left economists unsure whether Britain’s recovery was weakening, or if this was a brief hiccup, as employers hunted for better-qualified staff.