British pay growth slows but labour market remains robust

Employment rate hit record high of 73.7% but weakened earnings growth could threaten living standards if inflation starts to rise, data shows

Pay growth for Britain's workers appears to be slowing sharply, raising questions about the durability of the recent improvement in living standards.

Official figures published on Wednesday showed the labour market remained healthy in the three months to September, with the employment rate hitting a record high of 73.7%, and the unemployment rate sliding to 5.3%, its lowest level for more than seven years.

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