UK real pay grows at fastest rate in two years as unemployment rises

Figures provide mixed message for Bank of England when it considers interest rate cut next month

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The level of real pay for UK workers is rising at its fastest rate in more than two years despite a cooling of the labour market that has led to rising unemployment and falling job vacancies, the latest official figures show.

Fresh data from the Office for National Statistics (ONS) showed the mild recession in the second half of 2023 has had an impact on demand for workers but has been slower to affect wages.