Financial News: UK Labor Market Shows Signs Of Cooling

UK Labor Market Shows Signs Of Cooling

08/18/2026 - 07:47:00 (RTTNews)

(RTTNews) - The UK unemployment rate remained stable in the three months to June, and job vacancies and employment declined, signaling weakness in the labor market, official data showed Tuesday.

The unemployment rate stood at 4.9 percent in the June quarter, unchanged from the preceding period, the Office for National Statistics reported. The rate was seen at 4.8 percent. The number of vacancies decreased 6,000 to 707,000 in the three months to July as firms reduced recruitment due to rising labor costs.

Average earnings excluding bonus logged an annual increase of 3.5 percent, slightly faster than forecast of 3.4 percent. Including bonus, earnings advanced 4.1 percent compared to expectations of 4.0 percent.

There were 47,000 working days lost because of labor disputes in June.

In July, payroll employment decreased 94,000 from the previous year and by 13,000 on a monthly basis to 30.3 million, data showed.

ING economist James Smith said ongoing weakness in private-sector hiring and wage growth suggests the bar is still relatively high for a rate hike in 2026, barring a severe and prolonged spike in energy prices.

The economist expects the Bank of England to remain on hold this year and resume rate cuts from spring 2027. British Chambers of?Commerce Head?of?Policy for People and Work Patrick Milnes said "Although unemployment has held steady at 4.9%, this cannot hide the wider problems bedeviling the UK's job market."

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Bulgaria Q2 GDP Growth Eases Less Than Estimated (03 hr(s), 08 min(s), 37 sec(s) ago)
(RTTNews) - Bulgaria's economy expanded more than initially estimated in the second quarter, ...Full Story»

Eurozone Economic Growth Revised Up To 0.6% (03 hr(s), 45 min(s), 37 sec(s) ago)
(RTTNews) - The euro area economy expanded more than initially estimated in the second quarter, un ...Full Story»

Eurozone Investor Confidence Strongest Since 2022 (04 hr(s), 28 min(s), 37 sec(s) ago)
(RTTNews) - Eurozone investor sentiment rose for the fifth straight month in September, reaching i ...Full Story»

Czech Industrial Output Growth Eases; Trade Gap Widens (04 hr(s), 47 min(s), 37 sec(s) ago)
(RTTNews) - The Czech Republic's industrial output growth moderated in July, while the country ...Full Story»

Romanian GDP Shrinks As Estimated In Q2 (05 hr(s), 21 min(s), 37 sec(s) ago)
(RTTNews) - Romania's economy contracted further as estimated initially in the second quarter ...Full Story»

German Industrial Output Falls Most In 11 Months (05 hr(s), 33 min(s), 37 sec(s) ago)
(RTTNews) - Germany's industrial output declined at the fastest pace in almost a year in July, ...Full Story»

Singapore Retail Sales Growth Eases To 1.5% (06 hr(s), 01 min(s), 37 sec(s) ago)
(RTTNews) - Singapore's retail sales growth moderated in August after accelerating in the prio ...Full Story»

Eurozone GDP Growth Revised Up (06 hr(s), 32 min(s), 37 sec(s) ago)
(RTTNews) - The euro area economy expanded more than initially estimated in the second quarter, re ...Full Story»