UK wage growth slows to 4.2 percent as labor market cools
Annual pay growth excluding bonuses eased to 4.2% at the end of last year. This cooling trend supports investor expectations for two interest rate cuts in 2026.
The Office for National Statistics reported today, February 17, 2026, that British annual wage growth excluding bonuses slowed to 4.2% in the last three months of 2025 compared with the same period a year earlier. This reading, which represents the latest end-of-2025 labour-market data for the United Kingdom 
GB, marks a decline from the 4.4% growth recorded in the prior period. The figures are a crucial development as policymakers and markets assess the trajectory of the national economy.
GB, marks a decline from the 4.4% growth recorded in the prior period. The figures are a crucial development as policymakers and markets assess the trajectory of the national economy.
