According to Jin Ten data, Deutsche Bank economist Sanjay Raja stated that the latest UK labor market data shows signs of a cooling pay trend. There have already been signs of loosening in the labor market ahead of raising the minimum wage and employer payroll taxes in early April.
As of March, the annual wage growth rate excluding bonuses has fallen to 5.6% over the past three months, the unemployment rate has slightly increased, and job vacancies have decreased. Pay agreements are almost certain to slow further, which may prompt the Bank of England to accelerate the rate-cutting cycle, potentially speeding up rate cuts later this year.