Earnings growth cools in February as war clouds the labour market outlook

In the three months to February, the UK unemployment rate fell from 5.2% to 4.9%.

While total employment rose by 24,000, the decline in the unemployment rate was driven more by increased economic inactivity, partly due to fewer students seeking work.

Meanwhile, growth in average weekly earnings excluding bonuses slowed to 3.6%, the weakest pace in over five years.

With the unemployment rate still relatively elevated and firms having already absorbed a prolonged period of strong wage growth, the scope for workers to secure pay increases sufficient to protect real incomes appears increasingly constrained.

Preliminary payroll data for March show a decline of  11,000, pointing to further softening ahead as employers respond to rising energy costs by holding back on hiring.