The latest unemployment data and claimant counts for the West Midlands
The UK unemployment rate unexpectedly eased back to 4% in the three months to August, down from 4.1% in the previous quarter, though the ONS said the estimate should be treated with caution
The West Midlands the figure stood at 4.1 per cent for June to August, down from 4.7 per cent for May to July.
Wage growth has slowed to its lowest level for over two years, boosting hopes that interest rates will be cut again next month.
Official figures showed that average regular earnings growth eased back to 4.9 per cent in the three months to July, down from 5.1% in the previous three months.
This marked the lowest level since the three months to June 2022, according to the Office for National Statistics (ONS).
Experts said the slowdown in wage growth reinforces expectations that the Bank of England will cut rates again when it next decides in November, with most pencilling in a reduction to 4.75% from 5% currently.
Pay growth has fallen sharply after hitting a record high of nearly 8% in summer 2023, although it continues to outstrip inflation, rising by 2.6% in the three months to August with the Consumer Prices Index (CPI) taken into account.
Rob Wood, chief UK economist at Pantheon Macroeconomics, said “slowing wages make a November rate cut a slam dunk”.
“A 25 basis point November Bank Rate cut is a racing certainty based on pay growth weakening, but we think the Monetary Policy Committee (MPC) will cut rates only once a quarter after that as the labour market remains tight, even if it is easing,” he said.
