Pay growth slows as high interest rates bitelatest updates

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Published Time: 13.02.2024 - 10:40:19 Modified Time: 13.02.2024 - 10:40:19

Jason Alden/Bloomberg Chosen by us to get you up to speed at a glancePay growth slowed at the end of last year with regular wages in the last quarter rising by 6

: Jason Alden/Bloomberg

Chosen by us to get you up to speed at a glance

Pay growth slowed at the end of last year with regular wages in the last quarter rising by 6.2pc on the yearthe weakest since October 2022.

It raises hopes the Bank of England may soon be able to declare it has done its job battling inflationary pressures with high interest rates, letting it cut the cost of borrowing.

At the same time the number of job vacancies on offer fell again to 932,000, the Office for National Statistics found, the lowest number since June 2021.

However, there are still signs the jobs market is tight. Unemployment fell to 3.8pc, the lowest number in more than a year.

Read the latest updates below.



Here’s Jake Finney, economist at PwC UK, commenting on those labour market figures. He says that it is good news that pay is now growing in real terms but that the higher-than-expected wage growth could mean interest rate cuts are less likely:

“The latest data suggests the UK has achieved its sweet spot, with declining vacancies taking the heat out of the labour market whilst unemployment remains relatively flat. This view is supported by the nominal pay growth data, which continues to soften.

“However, the lingering concern for the Bank of England will be that the labour market has not cooled sufficiently to achieve a sustainable return to the 2pc inflation target. This remains one of the key barriers to the base rate cut in May that markets are currently expecting.

“More positively, workers will welcome that pay is now growing in real terms. With inflation declining at a faster pace than pay growth, workers are likely to see real term pay rises throughout most of 2024.”

The struggling parcel courier Yodel has been rescued by a consortium led by Jacob Corlett, the founder of rival service Shift, Sky News reports.

A new company called YDLGP, supported by Shift executives and the bank Solano Partners, have reportedly agreed to buy Yodel.

The Telegraph revealed last week that Shift had expressed an interest in Yodel, which is owned by the Barclay family.

Sky News reports that the deal is likely to be announced later on Tuesday and save thousands of jobs.

The Barclay currently own The Telegraph after repaying debt to Lloyds Banking Group last year but are barred from exercising any control over the publication as regulators investigate the newspaper being acquired by UAE-backed investors RedBird IMI.

Good morning. UK wages have risen at their slowest pace for more than a year, while unemployment dropped.

Wages rose by 6.2pc in the three months to December, against expectations of 6pc, while the unemployment rate was 3.8pc, down from 3.9pc in the three months before that.

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