UK pay growth slows as job vacancies hit five-year low

Iran war prompts cost of living squeeze for workers as ONS reports unemployment rate stays at 4.9%

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Wage growth in the UK slowed in June, official figures show, and vacancies hit a five-year low as workers come under pressure from a renewed cost of living squeeze amid the economic impact from the Iran war.

Figures from the Office for National Statistics show average growth in total earnings, including bonuses, fell to 4.1% in the three months to June, down from 4.4% in the three months to May. City economists had forecast a larger fall to 4%.