UK wage growth accelerates to 3.7% — Cyprus Mail

In the United Kingdom, average weekly earnings excluding bonuses rose by 3.7% over the three months to August compared with the same period in 2025. The growth rate accelerated after the 3.4% figure recorded earlier this year.

As Cyprus Mail reports, economists polled by Reuters had expected growth of 3.6%. The data for the three months to July were revised upward, with wage growth estimated at 3.6%.

Private sector dynamics

In the private sector, the pace of pay growth increased to 3.0% from 2.9%. This was the first acceleration since late 2024. A preliminary estimate by the UK tax authority also showed that the number of employees on payrolls increased by 13,000 in September. The August figure was revised: instead of the previous estimate of a decline of 26,000, an increase of 1,000 people was recorded.

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The UK unemployment rate for the three months to August fell to 4.7%, the lowest level since mid-2025. After the statistics were released, sterling rose against the US dollar.

Fewer job vacancies

At the same time, the number of open vacancies in the three months to September fell to 691,000 from 704,000 in the period to August. The figure dropped below 700,000 for the first time since the three months to April 2021 and reached its lowest level outside the COVID-19 pandemic period since 2014.

The UK Office for National Statistics said that the decline in vacancies affected small businesses the most, as they faced rising labour costs. Investors expect the Bank of England to raise its base rate to 4% at its November meeting.