UK average earnings growth slowed more than forecast in December

According to the report from Office for National Statistics, from October to December the UK employment rate was estimated at a record high of 76.5%, 0.6 percentage points higher than a year earlier and 0.4 percentage points up on the previous quarter.

The UK unemployment rate was estimated at 3.8%, 0.2 percentage points lower than a year earlier and 0.1 percentage points lower than the previous quarter.

The UK economic inactivity rate was estimated at a record low of 20.5%, 0.4 percentage points lower than the previous year and 0.3 percentage points lower than the previous quarter.

Estimated annual growth in average weekly earnings for employees in Great Britain slowed to 2.9% from 3.2% last month for total pay (including bonuses) and to 3.2% from 3.4% for regular pay (excluding bonuses). Economists had expected a 3.0% increase for total pay and 3.3% increase for regular pay.

In real terms (after adjusting for inflation), annual growth in total pay is estimated to be 1.4% and annual growth in regular pay is estimated to be 1.8%.

There were an estimated 810,000 vacancies in the UK for November 2019 to January 2020; this is 7,000 more than the previous quarter but 50,000 fewer than a year earlier.