Labour Market Pulse: The Low‑Down on Jobs in Q3
If you’re keeping an eye on the numbers that tell us how the job market’s feeling, here’s the scoop.
Employment and Unemployment
- Employment rate: 74.8% – a modest climb compared to the last quarter. Great news for folks who’ve been hunting for work, but the leap is small enough to whisper “slow and steady.”
- Unemployment rate: 4.1% – a slight dip and right on target with what economists predicted. Nobody’s setting off fireworks, but it’s a reassuring sign that fewer people are on the job‑hunt list.
Economic Inactivity
People not actively looking for work (economic inactivity) dropped to 21.9% this quarter, again nudging downwards.
Wage Growth – The Price of Work
Annual wage growth, including bonuses, climbed to 4%. This is a touch lower than the 4.1% market forecast, but still higher than the 4.6% seen until the end of July.
Isaac Stell, Investment Manager at Wealth Club, weighed in:
- He noted that wage growth has been cooling a bit leading into July.
- He pointed out that one‑off bonus payouts to NHS and Civil Service staff in June and July 2023 have muddied the waters, which means the raw figures don’t always reflect the everyday reality.
- Despite this wobbling growth, he sees the UK’s Labour market as firm, with little hint of a downturn.
- He also added that a softer wage environment could give the Bank of England a say in continuing its interest‑rate cuts.
- Markets initially reacted modestly, with the pound only briefly spiking before bouncing back.
Bottom line? The labour market looks resilient, but wage growth is taking a kayak ride—slower than before.
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