According to Jin Ten Data, Deutsche Bank economist Sanjay Raja stated that the latest UK labor market data shows signs of a cooling wage trend. There were already signs of loosening in the labor market before the minimum wage and employer wage tax were raised in early April.
In the three months ending in March, the annual growth rate of wages excluding bonuses fell to 5.6%, the unemployment rate rose slightly, and job vacancies decreased. Wage agreements are almost certain to slow further, which may prompt the Bank of England to accelerate its interest rate cut cycle, potentially speeding up rate cuts later this year.