UK pay growth rises 6% despite job loss warnings after Reeves’s budget

<p>Unemployment rate unchanged in three months to December, while vacancies increased in January</p><ul><li><a href="https://www.theguardian.com/business/2025/feb/18/strong-wage-growth-gives-bank-of-england-interest-rate-dilemma">Analysis: Strong wage growth gives Bank of England interest rate dilemma</a></li><li><a href="https://www.theguardian.com/business/live/2025/feb/18/uk-pay-growth-payrolls-vacancies-thames-water-ruling-business-live">Business live – latest updates</a></li></ul><p>UK workers’ pay grew sharply in the final quarter of last year and unemployment remained unchanged despite warnings from business that Rachel Reeves’s autumn budget would lead to job losses.</p><p>Figures from the <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/uklabourmarket/february2025">Office for National Statistics</a> (ONS) show annual growth in total average weekly earnings rose by 6% in the three months to the end of December, up from 5.6% for the November period and above a 5.9% forecast made by City economists.</p> <a href="https://www.theguardian.com/business/2025/feb/18/uk-pay-growth-rises-despite-job-loss-warnings-after-rachel-reeves-budget">Continue reading...</a>