UK Job Vacancies Fall to 702,000, Unemployment Steady

The U.K. labor market remained weak, with unemployment steady at 4.9% in the three months through July while payrolled employment fell by 26,000 from July to August and by 145,000 over the year. Job vacancies declined by 8,000 to 702,000 in the three months through August, their lowest level outside the COVID-19 period in more than a decade. Regular wage growth held at 3.5%, while total pay growth including bonuses slowed to 3.9%; public-sector wage growth remained considerably stronger than private-sector growth. Economists said the cooler labor market and moderating private-sector wages reduce the risk that higher energy prices will trigger a sustained inflation surge. Investors are awaiting inflation data for further clues about the effects of the Middle East conflict and energy costs, but the jobs figures have strengthened expectations that the Bank of England will keep interest rates on hold this week and potentially into next year.