The employment rate came in at 74.4%, lower than the previous quarter.

Unemployment came in at 4.4%, up slightly on the previous quarter and in line with market expectations of 4.4% (Trading Economics).

Economic Inactivity fell quarter-on-quarter at 22.1%, whilst annual wage growth came in at 5.7%, versus 5.9% in the three months to April and market expectations of 5.7% (Trading Economics).

Nicholas Hyett, Investment Manager at Wealth Club, said, “Wage growth may be starting to slow in the UK, although all sectors still reported above inflation pay rises – from a low of 3.0% in construction to 6.7% in finance and business services.

“That’s great news for workers, but less good for the Bank of England since it underpins stubbornly high inflation rates in the service sector.

“Impressive wage growth comes despite a modest rise in unemployment and fall in vacancies – which are usually signs the employment market is weakening a touch. That could mean wage growth starts to fade from here, as we annualise pay rises made in the second half of last year. If so, it would be among the last pandemic hangovers to fade, and could mean we see interest rates start to fall quite quickly.”