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Business live
UK unemployment rate drops unexpectedly, but wage growth hits two-year low
Live  
UK unemployment rate drops unexpectedly, but wage growth hits two-year low
UK jobless rate has dropped to 4.2%, but growth in regular pay slows to 5.4%
Headlines
Economy  
UK unemployment falls as wages growth hits lowest in two years
UK unemployment falls as wages growth hits lowest in two years
Supermarkets  
Grocery price inflation in Great Britain rises for first time in 17 months
Energy  
Electricity ‘superhighway’ between Scotland and England to go ahead
Overtourism  
Drunk visitors, rocketing rents and homogenised cafes: living in Europe’s tourist hotspots
Farming  
Brexit delays to seed imports could hit crop production, say growers
Property  
UK’s biggest housing association fined over four-year failure to fix window
Telecoms  
India’s Bharti to buy 24.5% BT stake from Patrick Drahi’s Altice
Sunil Bharti Mittal  
Who is the Indian tycoon now BT’s largest shareholder?
Oil and gas industry  
Treasury pledges low-carbon investment relief to protect UK jobs
Housing  
English councils poised to get powers to buy greenbelt land without overpaying
Airports  
Heathrow says it lost 90,000 transfer passengers after new £10 fee
Water industry  
Compensation for customers in England and Wales to double
Today's agenda
Unemployment across the UK has dropped unexpectedly, as more people find work – or drop out of the labour market altogether.

The latest labour market data, just released, show that the UK unemployment rate has fallen to 4.2% in April-June – the last quarter before the general election in July.Economist had expected a rise, from 4.4% to 4.5%.

But according to the Office for National Statistics, 51,000 fewer people were unemployed in the quarter, taking the total down to 1.435 million.

Employment picked up, by around 97,000 people, to 33.094 million.

But more people dropped out of the labour market altogether – often due to sickness, or caring responsibilities – lifting the economic inactivity rate to 22.2%.

The ONS also estimates that vacancies in the UK decreased in May to July 2024 by 26,000 on the quarter, to 884,000.

UK wage growth slowed in the quarter – but earnings kept rising faster than inflation.

The ONS reports that regular pay (excluding bonuses) rose by 5.4% in April to June. That’s the lowest increase since May to July 2022 (when it was 5.2%).

Growth in total pay (including bonuses) slowed more sharply, to 4.5% (from 5.7% a month ago). However, this data is distorted by one-off bonus payments made to NHS staff in June 2023.

That NHS one-off bonus from June 2023 helped public sector pay to grow faster than in the private sector, in April-June.

The Office for National Statistics reports that annual average regular earnings growth for the public sector “remains strong” at 6.0% in April-June, down from 6.4% in the previous quarter.

Private sector pay growth slowed to 5.2% – the lowest since March to May 2022 (when it was 5.1%).

Across the economy, the finance and business services sector saw the largest annual regular growth rate at 6.2%. Pay grew slowest in the construction sector, at 3.5%.

The agenda
• 7am BST: UK labour market data
• 8am BST: Kantar index of UK supermarket inflation
• 10am BST: IEA monthly oil market report
• 10am BST: ZEW index of eurozone economic confidence
• 1.30pm BST: US PPI index of producer price inflation

We’ll be tracking all the main events throughout the day ...
Nils Pratley on finance
Farewell, Patrick Drahi from BT – who won’t be missed
Farewell, Patrick Drahi from BT – who won’t be missed
Opinion
Analysis  
Jobs market uncertainty causes headache for Bank of England rate setters
Jobs market uncertainty causes headache for Bank of England rate setters
Trump would pull out of Paris climate treaty again – and Harris faces tough choices
Editorial  
The Guardian view on record payouts for CEOs: the way they live now
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Israel spokesperson accuses Mishal Husain of pro-Palestinian bias
Spotlight
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Even rightwing governments are joining in with G20-led push to make wealthy pay, with Italy doubling flat tax on foreign income
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