UK Wage Growth Slows as Unemployment Rises, Dimming Hopes for Immediate Interest Rate Cuts

Despite a slight increase in unemployment and slower wage growth, real wages continue to outpace inflation, offering mixed signals for the economy.

Wage growth in the UK has decelerated, with regular pay excluding bonuses growing at 6.1% in the three months to January.
The unemployment rate in the UK has unexpectedly risen to 3.9%, marking the first increase in recent months.
Despite the slowdown in wage growth and rise in unemployment, real wages have risen for the seventh consecutive month, outpacing inflation.
The number of job vacancies has decreased for the 20th consecutive time, indicating a tightening labor market.
Investors are adjusting their expectations for a Bank of England interest rate cut, now anticipating a potential reduction in June rather than May.